Indonesia has strong capital for the development of green hydrogen, namely the potential for abundant renewable energy resources, and Indonesia’s position as an archipelagic country that is on international trade routes which has the potential to become a global hydrogen hub.
To develop this hydrogen potential, Indonesia through PT PLN (Persero) and PT Pupuk Iskandar Muda, together with Augustus Global Investment (AGI) agreed on a Memorandum of Understanding (MoU) regarding investment in green hydrogen production in Indonesia.
The memorandum of understanding concerns the location and supply of electricity for environmentally friendly hydrogen production Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Dadan Kusdiana, after witnessing the signing of the MoU, said that the Government had considered the contribution of hydrogen in the energy transition in Indonesia.
“Green hydrogen will play an important role in the decarbonization of the transportation sector which will start in 2031, and the industrial sector starting in 2041,” said Dadan.
According to Dadan, Hydrogen has been used in Indonesia in the industrial sector, especially as a raw material for fertilizer. Hydrogen consumption in Indonesia is currently around 1.75 million tons per year, with utilization dominated by urea (88%), ammonia (4%) and oil refineries (2%).
“As a continuation of the national hydrogen strategy document, we are currently also compiling a hydrogen and ammonia national roadmap document that contains plans for implementing hydrogen in Indonesia until 2060, which includes regulations, standards, infrastructure, technology, supply-demand, etc. another,” he added.
Dadan also welcomes this collaboration and hopes that this collaboration can strengthen and increase efforts to achieve energy security and accelerate the energy transition.
“Finally, I really appreciate the intensive collaboration that AGI is carrying out with its Partners. I am sure that all the collaborations that we are witnessing today will strengthen and increase our efforts to achieve sustainable energy security and encourage our efforts to accelerate the energy transition,” he concluded.
Augustus Global Investment (AGI) plans to build a Green Hydrogen Production Plant with a production capacity of 35,000 tons per year in Indonesia and requires 50 ha of land. The investment cost for the construction of green hydrogen production infrastructure is estimated at USD 400 – 700 million, depending on the final form of green hydrogen to be transported (compressed hydrogen, liquid hydrogen, ammonia, or other forms).
“We are excited to invest in Indonesia and support Indonesia’s transition to a clean energy future,” said AGI CEO Fadi Krikor.
Two MoUs were signed related to investment in green hydrogen production in Indonesia. The first MoU was between Augustus Global Investment, PT Pupuk Indonesia, and PT Pupuk Iskandar Muda to secure land for a green hydrogen production project.
The second MoU is between Augustus Global Investasi and PT PLN to secure environmentally friendly energy supplies. The project will be located in SEZ Arun Lhokseumawe, Aceh, Indonesia. The location was chosen because of its strategic location, containing abundant sources of renewable energy, and strong support from the Government of Indonesia.
