Indonesian state power utility PT PLN has entered into a partnership with Singapore’s Sembcorp Industries to establish a green hydrogen production facility in Sumatra. This collaboration was formalized through a Joint Development Agreement (JDA) signed by PLN’s subsidiary, Energi Primer Indonesia (PLN EPI), and Sembcorp.
As per teHartanto Wibowo, PLN’s Director of Corporate Planning and Business Development, described the initiative as the first and largest hydrogen hub in Southeast Asia. He emphasized that the development of green hydrogen is central to PLN’s commitment to environmentally sustainable projects. “Green hydrogen is the key to future energy,” he stated on Thursday, October 24, 2024.
Iwan Agung Firstantara, President Director of PLN EPI, noted that the facility aims for an annual production capacity of up to 100,000 metric tons, reinforcing its status as the largest green hydrogen project in the region. The initiative is designed to establish a regional green hydrogen center linking Sumatra, the Riau Islands, and Singapore.
The signing of the JDA follows an initial phase of collaborative studies, which included site selection, risk assessment, and technical development. With the JDA finalized, the project will advance to the next stage, focusing on detailed engineering and commercial planning.
Iwan expressed optimism about the project’s potential to enhance Indonesia’s role in the energy transition within ASEAN and to foster the development of clean energy infrastructure for both domestic use and export. He underscored that green hydrogen will be crucial for decarbonizing the energy sector and will promote innovation and cooperation among Southeast Asian nations. “We are very enthusiastic about collaborating with Sembcorp on this project,” he said.
Koh Chiap Khiong, CEO of Sembcorp Industries for Singapore and Southeast Asia, characterized the agreement as a significant milestone in creating a sustainable hydrogen ecosystem for the region. He acknowledged the substantial progress already achieved in the partnership with PLN. “This project signifies an important step toward building a robust hydrogen ecosystem, enabling connections between Sumatra, the Riau Islands, and Singapore,” he stated.