Tokyo Electric Power Co. Holdings (TEPCO) and Obayashi Corp. are venturing into geothermal hydrogen production in Indonesia and New Zealand, respectively, as Japanese firms seek to capitalize on the growing demand for low-emission energy sources in the Asia-Pacific region.
TEPCO, partnering with Yamanashi prefecture and Toray Industries, plans to collaborate with Indonesia’s state-owned Pertamina to establish hydrogen production facilities at a geothermal plant in eastern Indonesia. The project, slated to begin as early as 2027, aims for an annual production capacity of 140 tonnes.
Meanwhile, Obayashi is expanding its existing geothermal hydrogen operations in New Zealand, where it currently produces up to 200 tonnes annually. The construction giant is eyeing future exports to Japan once suitable transportation infrastructure is developed in the 2030s.
These initiatives highlight the potential of geothermal energy in producing green hydrogen, offering a more stable alternative to weather-dependent solar and wind power. Despite higher costs, geothermal resources’ concentration in the Pacific Ring of Fire presents strategic advantages for Japanese companies.
However, challenges remain. Geothermal electricity generation costs about $0.07 per kilowatt-hour, significantly higher than solar or wind alternatives. Additionally, domestic development in Japan faces obstacles due to high costs and environmental restrictions, despite the country’s substantial geothermal reserves.
