Wednesday, May 29, 2024

Indonesia and Germany sets a US$ 700 million green hydrogen investment partnership

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Journalist IBP


Mahinda Arkyasa



Indonesia and Germany signed two MoUs regarding green hydrogen investment through PT PLN (Persero), PT Pupuk Indonesia (Persero), PT Pupuk Iskandar Muda, and with Augustus Global Investment (AGI) from Germany worth US$ 700 million.

The first MoU related to investment in green hydrogen production in Indonesia between AGI, and PT Pupuk Indonesia (Persero) and PT Pupuk Iskandar Muda regarding securing land for green hydrogen production projects.

Meanwhile, the second MoU between AGI and PT PLN (Persero) is to secure environmentally friendly energy supplies.

This project will be located in SEZ Arun Lhokseumawe, Aceh, Indonesia. This location was chosen because of its strategic location and containing abundant sources of renewable energy, and strong support from the Government of Indonesia.

Its support is based on a prepared road map for the utilization of green hydrogen and ammonia until 2060. This document contains regulations, standards, infrastructure, technology, to questions of demand and supply.

Through this MoU, AGI plans to build a green hydrogen production plant with a production capacity of 35,000 tons per year in Indonesia and requires 50 hectares of land. This project costs an investment of US$ 400-700 million to build green hydrogen production infrastructure.

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

Indonesia as global hydrogen hub

Dadan Kusdiana, Secretary General of the Ministry of Energy and Mineral Resources (ESDM) hopes that this collaboration can strengthen and enhance efforts to achieve energy security and accelerate the energy transition.

“Green hydrogen will play an important role in the decarbonization of the transportation sector which will start in 2031, and the industrial sector will start in 2041,” said Dadan, on August 28, 2023.

He also said that Indonesia has the potential to become a global hydrogen hub, so the government is considering hydrogen’s contribution to Indonesia’s energy transition.

Currently, hydrogen has been utilized in Indonesia in the industrial sector, especially as a raw material for fertilizer. With hydrogen consumption in Indonesia reaching 1.75 million tons per year, with utilization dominated for urea (88%), ammonia (4%), and oil refineries (2%).

Journalist IBP


Mahinda Arkyasa




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