“This MoU is the first cooperation of green hydrogen production in ASEAN, in our net zero emission roadmap, we also put hydrogen (as one of the solutions).”
Heaptalk, Jakarta – Indonesia put serious effort in order to improve its green energy capacity, one of which is through the cooperation of the green hydrogen plant establishment in Aceh.
As cited from Katadata (08/28), PT Pupuk Iskandar Muda (PIM) and State-owned electricity company PT PLN signed MoU with Germany-based company August Global Investment (AGI) to accelerate the realization of a green hydrogen plant construction in Aceh.
“This MoU is the first cooperation of green hydrogen production in ASEAN, in our net zero emission roadmap, we also put hydrogen (as one of the solutions). So, this action aims to change fuel,” conveyed the Secretary General of the Energy and Mineral Resources (ESDM) Ministry, Dadan Kusdiana.
This project is planned to be carried out in an area possessed by PIM in Aceh with a total investment of US$500 million. The President Director of PT PIM Budi Santoso Syarif stated, “We cooperate with PLN to accommodate the needs of electricity which attain 30 megawatts. Meanwhile, AGI comes as the funder and will rent the land. AGI also will provide support in the form of technology.”
In more detail, the factory will be constructed on an area of 50 hectares in Lhoksumawe green industrial cluster starting from 2024 to 2026. The factory is projected to generate 180,000 tonnes of ammonia or 35,000 tonnes of green hydrogen annually. The green hydrogen, further, is claimed to reduce carbon emission.
AGI’s President Director Fadi Krikor revealed that the company will list potential buyer for this green energy solution, but based on his prediction, most of the consumers will be from Asia market, such as Japan, Korea, and Singapore. In Indonesia, hydrogen also has been utilized in several industries, especially as the fertilizer raw material.
As additional information, hydrogen consumption in Indonesia has attained 1.75 million tonnes as of year which was dominated to produce urea (88%), ammonia (4%), and oil refinery (2%).