Sembcorp Utilities and Indonesian state-owned utility company PT PLN (Persero) signed a joint development study agreement on Tuesday to investigate the potential of green hydrogen production in Indonesia. The project, which could yield up to 100,000 tons of green hydrogen annually from local renewable energy resources, signals Indonesia's first green hydrogen export venture to Singapore.
The initiative is part of a broader plan to establish a low-carbon hydrogen supply chain within the ASEAN region. By leveraging Indonesia's abundant renewable energy resources, the project aims to produce green hydrogen via electrolysis of water, a carbon-neutral alternative to traditional fuels. This green hydrogen will then be exported to Singapore through an efficient and cost-effective subsea pipeline.
This collaboration presents Singapore with an opportunity to tap into Indonesia's renewable energy resources and opens a new market for Indonesia's green hydrogen exports. The project aligns with global efforts to combat climate change and supports Singapore’s 2050 net-zero target.
The agreement was formalized at the Singapore International Energy Week 2023, with officials including Wong Kim Yin, Group President & CEO of Sembcorp Industries, and Darmawan Prasodjo, President Director of PT PLN present. Despite the magnitude of the project, it is not anticipated to affect Sembcorp's earnings per share and net tangible assets per share for the year ending December 31, 2023.
Through this venture, both Sembcorp Utilities and PT PLN demonstrate their commitment to a sustainable future by providing concrete examples of future green energy projects. This marks a significant stride towards diversifying energy sources and ensuring a better future for the next generation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.