Indonesian State power utility PT PLN has announced a collaboration with Singapore’s Sembcorp Industries to develop a green hydrogen production facility in Sumatra.
The partnership was formalized through the signing of a Joint Development Agreement (JDA) by PLN’s subsidiary, Energi Primer Indonesia (PLN EPI), and Sembcorp.
Hartanto Wibowo, Director of Corporate Planning and Business Development at PLN, said that this project is set to become the first and largest hydrogen hub in Southeast Asia.
The development of green hydrogen is a key strategy for PLN in advancing environmentally friendly projects.
“Green hydrogen is the key to future energy,” Hartanto said in a statement as quoted on Thursday, October 24, 2024.
Iwan Agung Firstantara, President Director of PLN EPI, said the facility will have an annual production capacity of up to 100,000 metric tons, positioning it as the largest green hydrogen project in Southeast Asia.
The initiative is expected to play a crucial role in establishing a regional green hydrogen center that connects Sumatra, Riau Islands, and Singapore.
The signing of the JDA follows the initial phase of a collaborative study that included site selection, risk assessment, and technical scheme development.
With the JDA in place, the project will move forward into the next phase, which will involve detailed engineering and commercial planning.
Iwan expressed optimism that the green hydrogen project would significantly contribute to Indonesia’s leadership in the energy transition within ASEAN and create substantial opportunities for developing clean energy infrastructure to meet domestic and export needs.
He noted that green hydrogen will be a pivotal solution in the decarbonization of the energy sector and will encourage innovation and collaboration among countries in Southeast Asia.
“We are very enthusiastic about collaborating with Sembcorp on this project,” he said.
Koh Chiap Khiong, the CEO of Sembcorp Industries for Singapore and Southeast Asia, said the agreement marks a critical milestone in the development of a sustainable hydrogen ecosystem for Southeast Asia. He noted that significant progress has already been made in the partnership with PLN.
“This project signifies an important step toward building a robust hydrogen ecosystem , enabling connections between Sumatra, Riau Islands, and Singapore,” Chiap Khiong said.
