Sembcorp and PT PLN Sign Joint Development Agreement for Southeast Asia’s Largest Green Hydrogen Project

Sembcorp Industries (Sembcorp) through its wholly-owned subsidiary, Sembcorp Utilities Pte Ltd, and PT PLN Energi Primer Indonesia (PT PLN EPI), a sub-holding company of PT PLN (Persero), have entered into a joint development agreement (JDA) for a green hydrogen production facility in Sumatra, Indonesia, capable of producing 100,000 metric tonnes per annum. The project is poised to become Southeast Asia’s largest green hydrogen development initiative, with the goal of creating a regional green hydrogen hub connecting Sumatra, the Riau Islands, and Singapore.

The JDA, signed at the Singapore International Energy Week 2024, builds on the joint development study agreement between the two companies, which was announced on October 24, 2023. The first phase of the feasibility study, which focused on site selection, risk assessments, mitigation analysis and technical schematic development, has been successfully completed. Sembcorp and PT PLN EPI will now progress to the next phase of development, which involves detailed engineering and commercial structuring of the project.

The project reflects a shared vision for a sustainable energy future in Southeast Asia and is aligned with the aspirations of Singapore and Indonesia in fostering collaboration and innovation in the pursuit of clean energy.

The signing of the JDA is not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending December 31, 2024.