Accelerating Indonesia's Green Hydrogen Ecosystem: Challenges and Opportunities
Key Ideas
  • Indonesia aims to decarbonize its energy system by 2060 through renewable energy and hydrogen utilization, with a focus on green hydrogen to support decarbonization in multiple sectors.
  • The Green Energy Transition Indonesia program, supported by the UK embassy, aims to accelerate the development of green hydrogen through the Indonesia Green Hydrogen Accelerator initiative.
  • Global and national projections show a significant increase in hydrogen demand, with Indonesia targeting a 300-fold increase in low-carbon hydrogen utilization by 2060.
  • Challenges such as high production costs for green hydrogen are being addressed through increased renewable energy capacity, falling electricity prices, and regulatory support to make green hydrogen more competitive in the market.
Indonesia is striving to decarbonize its energy system by 2060, focusing on renewable energy and green hydrogen as key strategies. Despite challenges with renewable energy growth falling below targets, the country is aiming to leverage green hydrogen to achieve its energy transition goals. The Green Energy Transition Indonesia program, in collaboration with the UK embassy, aims to boost investment in renewable energy for green hydrogen production through the Indonesia Green Hydrogen Accelerator initiative. This initiative aims to establish a green hydrogen business ecosystem that aligns with the National Hydrogen Strategy to support decarbonization across industries, transportation, and power generation sectors. Projected increases in global and national hydrogen demand highlight the importance of transitioning to low-carbon hydrogen, with Indonesia aiming for a significant surge in hydrogen utilization by 2060 across various sectors. Challenges related to high production costs of green hydrogen are being addressed through efforts to increase renewable energy capacity, reduce electricity prices, and provide regulatory support. The National Hydrogen Strategy outlines a crucial period until 2030 to lay the foundation for Indonesia's hydrogen ecosystem, emphasizing the need for standards, regulations, and certifications to drive market development. To advance the green hydrogen ecosystem, a focus on infrastructure, financing, regulations, and workforce readiness is paramount. The Green Hydrogen Community is introduced as a platform for cross-stakeholder collaboration to drive the adoption of green hydrogen and support decarbonization efforts in Indonesia.
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