Indonesia's Green Hydrogen Push: Accelerating Climate Mitigation Efforts
Key Ideas
  • Indonesia aims to build a green hydrogen ecosystem to drive cost reductions and meet emission reduction targets in difficult-to-electrify sectors like industry and transportation.
  • Government officials emphasize the importance of including hydrogen in the Nationally Determined Contribution (NDC) strategy for emission reduction and achieving climate change targets.
  • Strategies discussed at the Global Hydrogen Ecosystem 2025 event include lowering green hydrogen production costs through renewable electricity and electrolysis cost reductions, aiming for USD 2 per kilogram by 2040.
  • Policies such as tax credits, contracts for price differences, consumption mandates, and financial incentives are proposed to stimulate the demand for clean hydrogen in transportation and industrial sectors.
The Indonesian government is making strides to integrate low-emission green hydrogen into its climate mitigation efforts. Irawan Asaad from the Ministry of Environment highlights the importance of developing a green hydrogen ecosystem to reduce emissions in sectors that are challenging to electrify, such as industry and transportation. Despite Indonesia's commitment to the Paris Agreement, hydrogen is yet to be fully incorporated into the Nationally Determined Contribution (NDC) strategy, leaving untapped potential for emission reduction. Key figures like Fabby Tumiwa stress the significance of reducing the cost of green hydrogen production by addressing factors like renewable electricity and electrolysis costs. Projections indicate that Indonesia could achieve a production cost of USD 2 per kilogram by 2040 through coordinated efforts. To achieve this, policies focusing on tax credits and price difference contracts are suggested, akin to approaches in the United States and Japan. Furthermore, stimulating demand for clean hydrogen is crucial. Initiatives like the consumption mandate enforced in the EU and financial incentives for end users, as seen in the US, play a vital role. Muhammad Akbar Rhamdhani provides insights into electrolysis technology, emphasizing the need for ongoing research to enhance efficiency and durability. Overall, the push for green hydrogen in Indonesia reflects a positive sentiment towards accelerating climate action and fostering collaboration between various stakeholders to achieve a sustainable energy transition.
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