Sembcorp, PLN plan green hydrogen production in Indonesia

Sembcorp Utilities, a unit of Singapore's Sembcorp Industries, and Indonesian state-owned utility company PLN (Persero) have signed a joint development study agreement to explore the feasibility of green hydrogen production in Indonesia for export to Singapore, Sembcorp said on October 24.

The facility could potentially produce up to 100,000 tonnes/year of green hydrogen in Indonesia using locally sourced renewable energy, which will be exported via subsea pipeline to Singapore. The project is expected to be Indonesia's first green hydrogen export to Singapore.

"Hydrogen and its derivatives remain one of the most promising substitutes for natural gas in power generation. Through this partnership with PT PLN (Persero), we endeavour to co-develop a viable low-carbon hydrogen supply chain in ASEAN that will diversify energy sources for both countries," Wong Kim Yin, CEO, Sembcorp Industries, said.

Darmawan Prasodjo, president director of PLN (Persero) said, "We appreciate our partner, Sembcorp, and we are hoping for support from all parties to successfully implement future green energy projects in Indonesia and the Southeast Asian region."

Green hydrogen is produced by splitting water into hydrogen and oxygen using renewable energy, such as solar or wind power. It is a clean-burning fuel that can be used to generate electricity, power transportation, and produce industrial products.