BKPM Calls Hydrogen Development Need 25.2 Billion US Dollars In 2031-2060

Hydrogen illustration (Photo: Doc. unsplash)

JAKARTA - The Ministry of Investment/Investment Coordinating Agency (BKPM) said an investment of US$25.2 billion was needed for the development of hydrogen originating from renewable energy (green hydrogen) in the period 2031-2060. "We have a target of 2030 of 43 percent carbon reduction, so this target also requires investment from the private sector of at least US$25.2 billion, and this is what we are pursuing," said BKPM Investment Deregulation Director Dendy Apriandi quoting Antara. He said, one of the companies that has invested in the development of green hydrogen is Pertamina which invested 11 billion US dollars as part of the target of accelerating green energy. In addition, he said foreign companies such as The Global Green Growth Institute (GGGI) have also collaborated with Samsung and Hyundai in a project for US$1.2 billion in Blok Sarulla, North Sumatra to produce green hydrogen. He said the business potential of developing green hydrogen is larger than conventional hydrogen derived from natural gas (grey hydrogen), but currently production costs for green hydrogen are still quite high. Nevertheless, he argued, the production price in 2023 of US$6.4 per kilogram is expected to continue to be trimmed.

"There is a possibility that the production costs could be cut below 2 US dollars," he said. Previously, the Ministry of Industry (Kemenperin) said that hydrogen development could be an effort to prevent an energy crisis in the industrial sector, as well as help the realization of reducing carbon dioxide (CO2) emissions according to the Enhanced-Nationally Determined Contribution (E-NDC) of 912 million tons by 2030. Acting Director General of Chemical Industry, Pharmaceutical and Textile (IKFT) of the Ministry of Industry Reni Yanita in a discussion forum in Jakarta, Thursday said, hydrogen is an alternative fuel that is environmentally friendly and an ideal energy storage medium, because hydrogen elements are a link for a sustainable and emission-free energy chain from start to finish.