H2 View understands that the Indonesian Government is aiming to invest up to $25.2bn into the green hydrogen sector by 2060.
As part of the country’s long-term strategy, Indonesia wants to reduce its CO2 emissions by 912 million tonnes by 2030. Data from the Ministry of Energy and Mineral Resources (ESDM) found that Indonesia wants to produce 9.9 million tonnes of hydrogen by 2060, distributed to transportation, industry, electricity and household gas networks.
According to reports, state-owned PT Pertamina will lead the charge in green hydrogen investment, already allocating $11bn towards its green energy targets.
Last year (2023), PT Pupuk Indonesia’s (Persero) Marketing Director, Ir Gusrizal, revealed Indonesia’s plans to become a global hub for ammonia, anticipated to complement its energy transition programme and targets for Net Zero emissions by 2060.
The company announced it would build an integrated green hydrogen and ammonia project later that year, in partnership with Perusahaan Listrik Negara (PLN) and ACWA Power.
Under a Joint Development Study Agreement (JDSA), the companies plan to produce more than 30,000 tonnes of hydrogen backed by up to $1.35bn. The project is scheduled to begin developments in 2025-2026, ahead of full operations in 2027.
In addition to this initiative, a Black & Veatch study concluded that a $500m 300MW green hydrogen production project located in the Arun Lhokseumawe Special Economic Zone (SEZ) in Indonesia is technically and economically feasible.
The proposed plant is expected to produce 98.5 tonnes of hydrogen per day from 300MW of electrolysers. Black & Veatch announced in November (2023) that the project is feasible, “and has the potential to significantly contribute to Indonesia’s energy transition.”