Techno Economic Analysis of Hydrogen Production at the Songawayaua Geothermal Power Plant

Abstract

This study evaluates the techno-economic feasibility of integrating green hydrogen production with geothermal energy at the Songawayaua Geothermal Power Plant (GPP) in North Maluku, Indonesia. Although Indonesia holds a geothermal potential of 23.9 GW, utilization remains limited—especially in remote, low-demand regions—leaving substantial untapped resources. This research proposes a 30 MW geothermal development scenario, allocating 10 MW for grid electricity and 20 MW for hydrogen production using Proton Exchange Membrane (PEM) electrolysis, representing a novel configuration in the national context.

The techno-economic analysis reveals that electricity sales alone result in a negative Net Present Value (NPV) of USD –110 million under current tariff regulations. Conversely, hydrogen production achieves an output of 2,800 tons/year with a Levelized Cost of Hydrogen (LCOH) of USD 1.47/kg. The integrated system becomes economically feasible at a hydrogen selling price of USD 8.53/kg (NPV = 0) and commercially viable at USD 13/kg (IRR = 12%).

This study contributes new insights by quantifying critical economic thresholds and price sensitivities in geothermal-hydrogen integration. Unlike previous studies that examine each system separately, this work presents an integrated pathway that enhances renewable energy utilization and supports Indonesia’s Net Zero Emissions (NZE) 2060 target.