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Indonesia Has the Potential to Become a Global Hydrogen Hub

Indonesia has great potential to become a global hydrogen hub. This is because the potential for Indonesia’s renewable energy resources is abundant and Indonesia’s position as an archipelagic country is on international trade routes.

The government also supports the development of green hydrogen by witnessing the signing of a memorandum of understanding regarding investment in hydrogen production in Indonesia between state-owned companies PT PLN (Persero and PT Pupuk Iskandar Muda) with Augustus Global Investment (AGI) Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Dadan

Kusdiana , after witnessing the signing of the MoU said the government had considered hydrogen’s contribution to the energy transition in Indonesia.

“Green hydrogen will play an important role in the decarbonization of the transportation sector which will start in 2031, and the industrial sector starting in 2041,” said Dadan, reported by the ESDM Ministry’s website. , Monday, 28 August 2023.

Benefits of hydrogen

According to Dadan, hydrogen has been used in Indonesia in the industrial sector, especially as a raw material for fertilizer. Hydrogen consumption in Indonesia is currently around 1.75 million tons per year, with utilization dominated by urea (88 percent), ammonia (four percent) and oil refineries (two percent).

“As a continuation of the national hydrogen strategy document, we are currently also compiling a national hydrogen and ammonia roadmap document that contains plans for implementing hydrogen in Indonesia until 2060, which includes regulations, standards, infrastructure, technology, supply-demand, and  others . ,” Dadan explained.

Dadan hopes that this collaboration can strengthen and increase efforts to achieve energy security and accelerate the energy transition.

“Finally, I really appreciate the intensive collaboration that AGI is carrying out with its partners. I am sure that all the cooperation that we are witnessing today will strengthen and increase our efforts to achieve sustainable energy security and encourage our efforts to accelerate the energy transition,” said Dadan.

AGI plans to build a Green Hydrogen Production Plant with a production capacity of 35 thousand tons per year in Indonesia and requires 50 ha of land.

The investment cost for the construction of  green hydrogen  production infrastructure is estimated at USD 400 million to USD 700 million, depending on the final form of green hydrogen to be transported ( compressed hydrogen, liquid hydrogen , ammonia, or other forms).

“We are excited to invest in Indonesia and support Indonesia’s transition to a clean energy future,” said AGI CEO Fadi Krikor.

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