Indonesia steps up green hydrogen activities with two plants in the pipeline

A Joint Study Agreement was signed by Pertamina Power Indonesia, Keppel, and Chevron to investigate the construction of specific green hydrogen and green ammonia projects utilizing renewable energy, especially in Sumatera, Indonesia.

The Business 20 (B20) Investment Forum, which was held in connection with the B20 Summit in Bali, is where the JSA was signed. The B20 is a recognized G20 participation organization that speaks for the corporate world. The JSA was signed by Andrew S. Mingst, director of Chevron New Energies International, Pte. Ltd., director of Keppel New Energy Pte., Ltd., and CEO of Pertamina NRE, Dannif Danusaputro. Luhut Pandjaitan, the Coordinating Minister for Maritime Affairs and Investment, Bahlil Lahadalia, the Head of BKPM, Nicke Widyawati, the President Director and CEO of PT Pertamina (Persero), and Cindy Lim, the CEO of Keppel Infrastructure, all observed the signing.

In the initial phase, the JSA plans to investigate the viability of creating a green hydrogen facility with a production capacity of at least 40,000 tonnes annually and powered by 250–400 megawatts of geothermal energy. Depending on the availability of geothermal energy and market demands, the hydrogen manufacturing facility could expand up to 80,000–160,000 tonnes annually.

The Joint Strategic Alliance (JSA) aims to capitalize on the complementary strengths of Pertamina, the largest energy company in Indonesia, Keppel Infrastructure, a premier Singapore-based energy infrastructure solutions provider with a proven track record of developing and operating large-scale energy and environmental infrastructure projects, and Chevron, a global energy company dedicated to supplying affordable, dependable, ever-cleaner energy.

The fourth most populous nation in the world, Indonesia, has a realistic chance of achieving its goal of net zero emissions by 2060, according to a report from the International Energy Agency.

1 As part of this strategy, hydrogen, and ammonia are anticipated to play significant roles as lower-carbon fuels. Ammonia has the potential to replace bunker fuels as a lower-carbon alternative in the worldwide maritime sector. It can also be used to transport hydrogen.

Around 40% of the world’s geothermal resources are found in Indonesia, opening up the possibility to use geothermal energy as a dependable and steady energy source to create green ammonia or hydrogen.

Building of a green hydrogen plant in Indonesia by Singapore’s LNG Alliance

The green arm of the Singapore-based LNG Alliance, Carbon Governance, intends to construct a green hydrogen plant in Indonesia in anticipation of an “exponential” rise in demand from nearby nations over the coming few decades.

The Bintan solar power plant, with a capacity of 30 tonnes per day, is anticipated to begin construction in the second half of 2024 and complete it in 2026.

Within two years of starting production, the company intends to boost the plant’s capacity from 30 tonnes per day to 60 tonnes per day, and then to 115 tonnes per day over the following five years.

The project would use high-efficiency bi-facial solar panels, according to LNG Alliance managing director Muthu Chezhian, which should supply enough and dependable power to drive electrolyzers.

Proton exchange membrane electrolyzers are being considered by the company to be used in the plant, and a suitable technology provider will be chosen in the second quarter of 2023, according to him.

The green hydrogen will be exported by Carbon Governance to nearby nations, where demand is anticipated to soar in the coming decades. Singapore will serve as the project’s main market.

In Southeast Asia, according to Muthu, Singapore offers immediate market potential for green hydrogen due to its dedication to and efforts in pursuit of its net zero emission objective.