Press Release
Commencement of Feasibility Study on the NEDO Project "Demonstration of hydrogen technology that utilizes surplus electricity and exhaust heat from geothermal power generation to achieve economically viable hydrogen production and transportation"
~ To Begin in Indonesia on September 1, 2023 ~
September 6, 2023
Tokyo Electric Power Company Holdings, Inc.
Yamanashi Hydrogen Company, Inc.
Tokyo Electric Power Company Holdings, Inc. (hereinafter referred to as, "TEPCO HD") and Yamanashi Hydrogen Company, Inc. (hereinafter referred to as, "YHC") began a Feasibility study on their "Demonstration of hydrogen technology that utilizes surplus electricity and exhaust heat from geothermal power generation to achieve economically viable hydrogen production and transportation", now that it has passed the New Energy and Industrial Technology Development Organization's (hereinafter referred to as, "NEDO") Stage-gate review*1 and the decision was made on September 1, 2023 to provide a grant for the project. This study was selected as an "International demonstration of Japanese technology that will contribute to decarbonization and energy conversion" by NEDO.
The purpose of the demonstration study is to examine efficient methods for configuring and operating hydrogen production technology facilities that leverage the surplus power*2 and waste heat from geothermal power generation plants in the Republic of Indonesia (hereinafter referred to as, "Indonesia"), and to establish efficient production and transportation methods for green hydrogen and green ammonia. TEPCO HD and its local partner, PT Pertamina Power Indonesia (Pertamina NRE (hereinafter referred to as, "PNRE")), signed a Joint Study Agreement (JSA) last year for an "International demonstration of Japanese technology that will contribute to the optimization of energy consumption" and have been engaged in joint research (announced on October 18, 2022). For this feasibility study starting in September 2023, YHC, which has expertise in the operation of hydrogen production facilities, is participating as a new co-proposer.
During the feasibility study, we will examine specifications for hydrogen production facilities, confirm that all local permits have been obtained, and develop a customer base in preparation for the demonstration project, which is scheduled for FY2024. In the future, TEPCO HD and PNRE will work together to commercialize the findings from this joint research in accordance with the Memorandum of Understanding (MOU) (announced on March 3, 2023). As the first step of the commercialization phase, we have set the goal of selling our products and services within Indonesia in the short-term, after which they will be exported to other countries, including Japan, in the mid to long-term.
TEPCO HD and YHC aim to contribute to a carbon-neutral society by leveraging Indonesia's abundant geothermal resources for the cost-competitive and profitable production of hydrogen and ammonia.
*1 Stage-gate review
A competitive selection process conducted at the completion of the Basic Study. Individual projects deemed to be promising candidates for a Demonstration Study are allowed to proceed to the Feasibility Study stage.
*2 Surplus power
In some areas of Indonesia, geothermal power plants are in partial load operation due to low electricity demand. The excess power generated is defined as surplus power in this demonstration project, and used as electricity for hydrogen production.
About Tokyo Electric Power Company Holdings, Inc. (TEPCO HD)
TEPCO HD is Japan's largest electric company and has enabled people to live comfortably for decades by supplying energy. As part of its carbon neutrality strategy, TEPCO HD aims to reduce CO2 emissions originating from the supply of energy to net zero by the year 2050. The entire TEPCO Group is engaged in initiatives to increase energy demand by further promoting electrification while simultaneously developing zero-emission power sources, and is working with society to pave the way to carbon neutrality.
About Yamanashi Hydrogen Company, Inc. (YHC)
Yamanashi Prefecture, Tokyo Electric Power Company Holdings, Inc., and Toray Industries Co., Ltd., established YHC to further enhance P2G (Power to Gas) systems that they have developed, and to jointly aim at achieving carbon neutrality.
YHC engages in the production, supply, and sale of hydrogen and energy services; technological development and demonstration projects related to the production, storage and transportation of hydrogen; and projects aimed at popularizing and spreading the use of hydrogen.
YHC will accelerate the practical application of its P2G systems through further technological development, and by widely deploying these systems both in Japan and overseas. Through these efforts, it will actively contribute to enabling carbon neutrality by promoting the de-fossilization and electrification of fuels.
About PT Pertamina Power Indonesia (Pertamina NRE (PNRE))
PNRE is a subsidiary of PT Pertamina (Persero), Indonesia's largest energy company. PNRE has four business subsidiaries and affiliates: PT Pertamina Geothermal Energy (subsidiary), PT Jawa Satu Power (affiliate), PT Jawa Satu Regas (affiliate), and Indonesia Battery Corporation (affiliate). Its business focuses on renewable energy, low-carbon power generation and future business development. It is highly committed to supporting Indonesia in achieving net zero emissions by 2060 through energy conversion, and implementing ESG.
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