PT PLN (Persero) has joined forces with Singapore’s Sembcorp Utilities Pte Ltd to develop green hydrogen production. This partnership signifies a significant step in the creation of green hydrogen, which will be exported to meet Singapore’s energy needs.
This initiative is expected to produce 100,000 tons of green hydrogen per year and potentially generate clean energy to satisfy Singapore’s electricity demands.
The collaboration was marked by the signing of a Joint Development Study Agreement (JDSA) for the Green Hydrogen Plant during the Singapore International Energy Week 2023 event.
Darmawan Prasodjo, President Director of PLN, emphasized that PLN was the first entity in Indonesia to produce green hydrogen. This aggressive step by PLN leverages the company’s existing resources while advancing innovation to expedite green hydrogen production.
“Not only capable of producing clean electricity, but PLN is also partnering with various stakeholders to produce more environmentally friendly green hydrogen. In the energy transition agenda, acceleration must be ongoing alongside technology innovation development,” stated Darmawan.
Darmawan further explained that this collaboration followed a lengthy process. Over eight months, the two companies aligned philosophical, strategic, and operational aspects and have built a strong partnership for the long term. “With the JDSA, PLN and Sembcorp will begin exploring further steps related to technical, financial, tax, legal, and commercial aspects. This feasibility study will strengthen PLN and Sembcorp going forward,” he added.
The partnership between these two companies is not only a concrete manifestation of the bilateral and economic relations between Indonesia and Singapore. Darmawan emphasized that this collaboration is not just aimed at achieving carbon emissions reduction targets but also serves as a catalyst for economic growth between the two nations.
“We believe that these joint efforts are not unrelated to the economic potential that can drive the entire ASEAN economy. Therefore, we believe that a favorable and attractive investment climate is crucial. We prioritize sustainability, potential risks well-managed, and promising investment returns,” Darmawan stated.
Meanwhile, Wong Kim Yin, Group President & CEO of Sembcorp Industries, noted that through the partnership with PLN, they aim to develop a low-carbon hydrogen supply chain in the ASEAN region, diversifying energy sources for both countries.
“Hydrogen and its derivatives remain one of the most promising substitutes for natural gas in power generation. Therefore, this initiative will also support Singapore’s electricity sector as the country progresses toward its zero-carbon target,” he added.