Wednesday, May 29, 2024

PLN inaugurates 21 green hydrogen plants across Indonesia aiming to lead in Southeast Asia

Reading Time: 2 minutes
Journalist IBP


Mahinda Arkyasa



PT PLN (Persero) officially opens 21 Green Hydrogen Plants (GHP) located throughout Indonesia, making PLN the company with the most GHP in Southeast Asia. The inauguration ceremony took place at the steam-powered gas power plant (PLTGU) on November 20, 2023. 

Earlier in October, PLN had inaugurated its first GHP in Indonesia at the Muara Karang PLTGU in Jakarta. With these initiatives, PLN now has the capacity to produce up to 199 tons of hydrogen per year.

“Previously, the production capacity was only 51 tons. Now, we can increase it to 199 tons with an excess production of up to 124 tons,” said Darmawan Prasodjo, PLN’s President Director, on November 20, 2023.

Darmawan explained that the hydrogen produced by these 21 units would be used as fuel for vehicles. He emphasized that the government is not only promoting the use of electric vehicles but also hydrogen-powered vehicles.

“This means that previously, with one unit of hydrogen, it could only be used for 150 hydrogen vehicles. With these 21 hydrogen units, it can increase to 424 hydrogen vehicles,” he said.

The PLN CEO highlighted that the cost of using hydrogen fuel is more affordable than conventional fuel (BBM), with potential cost reductions of up to 35%.

He stated that PLN’s second GHP is the result of innovation in response to the challenges of energy transition by maximizing existing assets. Darmawan further expressed that PLN would continue to innovate to create added value for the country and the company.

Meanwhile, PLN’s CEO IP Edwin Nugaraha Putra mentioned that the creation of these 21 hydrogen units did not incur any investment costs because the hydrogen is sourced from unused excess hydrogen.

Previously, the government had prepared a roadmap for the utilization of hydrogen and green ammonia until 2060. This document would include regulations, standards, infrastructure, technology, and issues related to supply and demand.

Dadan Kusdiana, the Secretary-General of the Ministry of Energy and Mineral Resources (ESDM), stated that Indonesia has the potential to become a global hydrogen hub. The government is also considering the contribution of hydrogen in Indonesia’s energy transition.

Dadan mentioned that hydrogen has been utilized in Indonesia in the industrial sector, particularly as a raw material for fertilizer production. The current hydrogen consumption in Indonesia is around 1.75 million tons per year, with the majority used for urea (88%), ammonia (4%), and oil refineries (2%).

“Green hydrogen will play a crucial role in decarbonizing the transportation sector starting in 2031 and the industrial sector starting in 2041,” said Dadan.

One of the initiatives for developing the potential of green hydrogen is initiated by PT PLN and PT Pupuk Iskandar Muda. The two state-owned enterprises collaborate with Augustus Global Investment (AGI) in investing in green hydrogen production in Indonesia. 

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

In this collaboration, AGI plans to build a Green Hydrogen Production Plant with a production capacity of 35,000 tons per year in Indonesia, requiring a 50-hectare land. 

The estimated investment cost for developing the green hydrogen production infrastructure is between US$ 400 million and US$ 700 million.

Journalist IBP


Mahinda Arkyasa




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