Starting To Be Worked On, These Are The Benefits Of Hydrogen And Amonia For 4 Business Sectors In Indonesia

Illustration. (Photo: Doc. Antara)

JAKARTA - The Indonesian government has prepared a national hydrogen strategy that will position hydrogen as an important contributor to the energy transition and play a role in decarbonizing the global energy system.

Head of the Data and Information Technology Center of the Ministry of Energy and Mineral Resources (ESDM) Chrisnawan Anditya said, Indonesia is targeting 3 strategic results, namely reducing dependence on fossil fuels, branding decarbonization targets by developing the domestic hydrogen market and exporting hydrogen and its derivatives to the global market to achieve the goal of decarbonization.

"Hydrogen and low-carbon ammonia play a role in the sector in Indonesia, namely first, the industrial sector as a substitute gradually for existing high-carbon hydrogen and emission reduction for the cement and steel industry," said Chrisnawan in DETalk which was held online, Tuesday, April 2.

He said low-carbon hydrogen and ammonia produced from EBT sources also support industrial sector decarbonization and will increase industrial competitiveness when a carbon tax is imposed.

Second, he continued, from the transportation sector, it is known that starting in 2030 low-carbon hydrogen will be used in the transportation sector for long-distance vehicles such as trucks, heavy transportation and shipping.

"A hydrogen vehicle is also used as a diversification of electric vehicles such as batteries," continued Chrisnawan.

Third, from the electricity sector, Chrisnawan also mentioned that the government considers hydrogen cofiring or low-carbon ammonia in fossil-based plants from 2030 to 2050.

"Then the storage of off-grid generators and overcome the retailment of EBT plants," he added.

Finally, for the commodity, hydrogen and ammonia sectors, they are considered to be potentially traded in regional and international markets taking into account Indonesia's strategic position as a maritime country, the potential monetization of EBT sources for power plants with low demand and high interest from market participants in capturing opportunities for low-carbon hydrogen and ammonia trading.

"Currently, hydrogen has been used in Indonesia in the industrial sector, especially as raw material for fertilizers," he concluded.