PLN, Pupuk Iskandar Muda And AGI Agree To Develop Green Hydrogen

PT PLN (Persero) and PT Pupuk Iskandar Muda, together with AGI signed the MoU for the development of green hydrogen in Aceh (Photo: Maria Trisnawati/VOI)

JAKARTA - Indonesia through PT PLN (Persero) and PT Pupuk Iskandar Muda, together with Badminton Global Investment (AGI) agreed on a Memorandum of Understanding (MoU) regarding investment in green hydrogen production in Indonesia.

The memorandum of understanding regarding the location and provision of electricity for environmentally friendly hydrogen production.

Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Dadan Kusdiana said that the Government has 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 begin in 2031, and the industrial sector will begin in 2041," said Dadan, Monday, August 28.

According to Dadan, Hydrogen has been used in Indonesia in the industrial sector, especially as raw material for fertilizers. hydrogen consumption in Indonesia currently ranges from 1.75 million tons per year, with utilization dominated by 88 percent urea, 4 percent ammonia and 2 percent oil refinery.

"As a continuation of the national hydrogen strategy document, we are currently also compiling a national roadmap for hydrogen and ammonia which contains plans for implementing hydrogen in Indonesia until 2060, which includes regulations, standards, infrastructure, technology, supply-demand, and others," he added.

Dadan also welcomed this collaboration, and hoped that this collaboration could strengthen and improve efforts to achieve energy resilience and accelerate the energy transition.

Just so you know, Badminton Global Investment (AGI) plans to build Production Plant Green Hydrogen with a production capacity of 35,000 tons per year in Indonesia and requires 50 ha of land. Investment costs for the construction of green hydrogen production infrastructure are estimated at 400 to 700 million US dollars, depending on the final form of green hydrogen to be transported (compressed hydrogen, liquid hydrogen, ammonia, or other forms).

"We are very enthusiastic about being able to invest in Indonesia and support Indonesia's transition to the future of clean energy," said AGI CEO Fadi Krikor.

Today, two MoUs have been signed regarding investment in green hydrogen production in Indonesia, the first MoU between Badminton Global Investment, PT Pupuk Indonesia (Persero), and PT Pupuk Iskandar Muda to secure land for green hydrogen production projects. The second MoU is between Badminton Global Investment and PT PLN (Persero) to secure environmentally friendly energy supply.

The project will be located at SEZ Arun Lhokseumawe, Aceh, Indonesia. The location was chosen because of its strategic location, containing abundant renewable energy sources, and strong support from the Indonesian government.