PLN Agrees On Hydrogen Production Development Study With Sembcorp

PLN President Director Darmawan Prasodjo. (Photo: Doc. ANTARA)

PT PLN (Persero) cooperates with Singaporean company Sembcorp Utilities Pte Ltd for the development of green hydrogen production.

Later, PLN will export green hydrogen to meet Singapore's needs.

The cooperation between the two companies is marked through the Joint Development Study Agreement (JDSA) for the development of Green Hydrogen Plant and is projected to produce 100,000 tons of green hydrogen per year.

Not only that, this project also has the potential to produce clean energy that can meet Singapore's electricity needs.

PLN President Director Darmawan Prasodjo emphasized that PLN is an entity in Indonesia that first produces green hydrogen.

This aggressive step by PLN utilizes the resources that PLN has so far, with the development of innovation so as to accelerate the production of green hydrogen.

"Not only able to produce clean electricity, PLN also cooperates with various parties to produce green hydrogen that is more environmentally friendly. In the energy transition agenda, acceleration steps need to be carried out in tandem with the development of technological innovations," said Darmawan in a statement quoted Thursday, October 26.

Darmawan also explained that this collaboration was established after a long process, for eight months the two companies align philosophical, strategic, and operational aspects, and have built strong collaborations in long-term partnerships.

"So with the Joint Development Study Agreement (JDSA), PLN and Sembcorp have begun to explore further steps related to technical, financial, tax, legal and commercial aspects. The feasibility study will strengthen PLN and Sembcorp in the future," he added.

The cooperation between these two companies is also a concrete manifestation of bilateral and economic relations between Indonesia and Singapore.

Darmawan emphasized that this collaboration is not only to pursue the carbon emission reduction target but also as a catalyst for economic growth between countries.

"We believe that this joint effort cannot be separated from the economic potential that is able to boost the entire economy of the ASEAN country. For this reason, we believe that a good and attractive investment climate is important. We prioritize sustainability aspects, potential risks that are handled properly and promising investment returns," said Darmawan.

Meanwhile, Sembcorp Industries Group President & CEO Wong Kim Yin said, through a partnership with PLN, his party is working together to develop a low-carbon hydrogen supply chain in the ASEAN region that will diversify energy sources for both countries.

"Hydrogen and its derivatives remain one of the most promising natural gas substitutes for power plants. So, this will also support Singapore's electricity sector in line with the country's progress towards zero carbon targets," he said.