Indonesia, a country rich in energy and renewable resources, is taking a substantial step towards a cleaner, more sustainable future with the support of global infrastructure solutions leader, Black & Veatch. The company has conducted a feasibility study for Augustus Global Investment (AGI) that explores the potential of green hydrogen generation in the archipelago.
The project aims to harness the power of green hydrogen production by employing electrolyzers, powered by grid-supplied renewable energy. Black & Veatch’s contribution includes a plant configuration and technology analysis, alongside order-of-magnitude cost estimates for hydrogen generation and storage. According to the study’s findings, this project is not just a theoretical concept but can be technically and economically feasible. Furthermore, it has the potential to make a significant contribution to Indonesia’s ongoing energy transition.
The proposed green hydrogen production plant is expected to take shape in the Arun Lhokseumawe Special Economic Zone (SEZ) located in the Aceh province of Indonesia. Upon completion, this facility is projected to produce a staggering 98.5 tons of hydrogen per day (TPD) with a substantial 300-megawatt (MW) capacity. Such an ambitious undertaking showcases Indonesia’s commitment to green energy and sustainability.
The estimated cost of developing the green hydrogen production plant is approximately USD 500 million. While this investment is substantial, it aligns perfectly with Indonesia’s broader goals of achieving carbon neutrality. As part of these efforts, the country is focusing on large-scale renewable energy, particularly in the areas of solar, hydropower, geothermal energy, and hydrogen.
Black & Veatch’s involvement in this venture is no surprise, given their track record. The company is actively participating in projects to build 245 MW of electrolysis capacity, effectively doubling global green hydrogen production. One standout project is their role as the engineering, procurement, and construction (EPC) provider for the Advanced Clean Energy Storage facility in Delta, Utah, USA. Once completed, this facility will stand among the world’s largest industrial green hydrogen production and storage facilities.
The potential for a sustainable, hydrogen-based economy in Indonesia could be a reality with the combined efforts of Black & Veatch and Augustus Global Investment. This initiative aligns perfectly with global efforts to combat climate change and demonstrates how partnerships between international companies and local investors can drive positive change. In addition to their technical expertise, Black & Veatch also recognizes the value of knowledge-sharing and collaboration on the international stage, as demonstrated by their participation in Enlit Asia 2023, where they will lay out a roadmap for achieving net zero emissions in Southeast Asia’s future energy systems.
