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Green Hydrogen H2 News

Indonesia’s Strategy for a Hydrogen Economy

Arnes BiogradlijaBy Arnes Biogradlija22/06/20232 Mins Read
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Indonesia’s National Research and Innovation Agency (BRIN) has embarked on a comprehensive review of the national strategy and road map concerning long-term hydrogen use, aiming for 2060.

This strategic initiative underscores the growing emphasis on hydrogen as a key player in the country’s energy landscape, signaling a proactive transition to cleaner energy resources.

Dr. Eniya Listiani Dewi, a leading researcher at BRIN’s Energy Conversion and Conservation Research Center, confirmed the agency’s commitment to developing a robust hydrogen ecosystem in Indonesia. Her remarks, made during the Indonesia International Hydrogen Summit 2023, reiterated the importance of the newly outlined road map.

This comprehensive strategy roadmap offers insights into three vital aspects of hydrogen utilization: the initiation of a pilot project or demo plant, market introduction and penetration, and the impact on economic value-added. Each of these segments represents crucial milestones in Indonesia’s hydrogen journey.

According to Dr. Dewi, Indonesia’s future economy will not be solely dependent on oil but will also leverage hydrogen. This versatile commodity can be harnessed across multiple sectors, from power plants and diverse industries – notably the petrochemical industry – to housing and transportation.

Recognizing the need for a holistic approach, BRIN urges the Ministry of Energy and Mineral Resources to formulate a national hydrogen strategy that covers every aspect – potential, production chain, distribution, and usage in Indonesia. This integrated strategy will reinforce the government’s commitment to hydrogen utilization and dispel any uncertainty among the private sector.

Interestingly, approximately 20 industry projects are already conducting pre-feasibility studies on hydrogen technology in various regions including Sumatra, Kalimantan, Sulawesi, Java, Sumba, East Nusa Tenggara, and Papua. Yet, as Dr. Dewi pointed out, private-sector involvement in such projects necessitates a clear road map and unwavering government commitment.

The path to hydrogen energy adoption is a long one, requiring not only government commitment but also comprehensive regulations, clear standards, and a robust incentive mechanism. The journey must commence with green hydrogen production within the industry sector. Although this is currently only viable on a small scale due to high costs, Dr. Dewi expects the prices to decline by 2030.

However, she warned against complacency, emphasizing that Indonesia cannot afford to wait until 2030 to commence hydrogen utilization, as it risks lagging behind. The time to act, according to Dr. Dewi, is now.

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