HDF Energy and DFC to develop green hydrogen power plants in Indonesia

A formal partnership between PT HDF Energy Indonesia and DFC (US International Development Finance Corporation) has been established to facilitate the construction of renewable multi-megawatt power facilities in Indonesia.

This collaboration, which was announced on the eve of the G20 meeting, is a component of a strategic alliance between the United States and Indonesia that includes 13 programs aimed at combating climate catastrophe and advancing access to affordable food and energy. Following a meeting with Indonesian President Joko Widodo at the G20 summit, US President Joe Biden made the announcement.

Indonesia is extremely vulnerable to the effects of climate change because it is an island country. Coal, oil, and gas account for more than 90% of the energy used in Indonesia today, which is mostly dependent on fossil fuels. In many areas of the nation, particularly in Eastern Indonesia (in the provinces of East Nusa Tenggara, Papua, and Maluku), where HDF Energy has a local presence, isolated grids fueled by diesel fuel are the only option.

The creation and development of renewable multi-megawatt power plants by HDF Energy may be the answer to this issue. Renewable energy sources continuously and continuously create non-intermittent, renewable, and dispatchable electricity. Since they only use solar energy and water to produce stable electricity, they are a greener alternative to traditional diesel fuel power plants as they reduce greenhouse gas emissions and noise. They combine an intermittent renewable source and large-scale, long-term energy storage through a hydrogen chain.

DFC has agreed to give HDF Energy grant cash for technical assistance in order to facilitate the creation of a portfolio of renewable energy projects in Indonesia. With cooperation from development organizations, HDF Energy’s pipeline of 22 renewable energy projects in Indonesia will receive technical assistance from DFC for a variety of technical studies and feasibility studies. The projects are expected to cost an investment of 1.5 billion USD.

The first and most advanced facility, a 10 MW renewable power plant, is located on the island of Sumba and serves as the focal point of the Indonesian government’s Sumba Iconic Island sustainable development program. To deliver these studies, HDF and DFC are making the most of the hiring of regional technical consultants in order to better comprehend how hydrogen solves the region’s power industry. By generating green jobs locally, these initiatives will help boost Indonesia’s regional and overall economies.

In order to create synergies on the efforts, resources, and expertise required for the study and development of green hydrogen projects, HDF Energy and PT Nusantara Power, a division of PT PLN Persero (the Indonesian state-owned electric utility), already signed a Memorandum of Understanding last month. These comprise the 22 renewable energy projects from HDF Energy for which DFC will offer technical support.

Both businesses will also take into account the installation of hydrogen-peaking plants to cut down on the use of fossil fuels in current power plants. These hydrogen project development will be expedited because to the partnership between HDF Energy and PT PLN Persero.