Indonesia's $25.2 Billion Green Hydrogen Investment Ambition
Key Ideas
  • Indonesia aims to attract $25.2 billion in private sector investment for green hydrogen development by 2060 to prevent an energy crisis in the industrial sector and reduce carbon dioxide emissions.
  • Green hydrogen, produced through electrolysis using renewable energy sources, is seen as a cleaner and more sustainable alternative to conventional hydrogen, with significant business potential.
  • State-owned company Pertamina is a key investor, allocating $11 billion towards green energy development, highlighting the growing interest in transitioning to clean and emission-free fuels.
  • Green hydrogen's versatility makes it a promising candidate to substitute fossil fuels across various sectors like heavy industry, long-haul transport, and energy storage, contributing to decarbonization efforts.
Indonesia is setting ambitious targets in the green hydrogen sector, aiming to secure $25.2 billion in private sector investment by 2060. This initiative, led by the Ministry of Industry, is crucial for averting an energy crisis in the industrial landscape while concurrently addressing environmental concerns such as reducing carbon dioxide emissions. The move towards green hydrogen is justified by its potential to offer a clean, emissions-free fuel derived from renewable sources like solar, wind, or hydropower through the process of electrolysis. Dendy Apriandi, the Director of Investment Deregulation at the Ministry of Industry, emphasizes that despite current production costs being relatively high, the prospects in the green hydrogen market surpass those of conventional hydrogen. The involvement of substantial investors like Pertamina, a state-owned oil and gas company committing $11 billion towards green energy, underscores the growing momentum towards sustainable energy transitions. Green hydrogen's applications extend to various sectors, with possibilities in heavy industry, long-haul transport, and energy storage, indicating its versatility and potential to contribute significantly to reducing carbon emissions and fostering a more sustainable future.
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