Indonesia's Potential as a Hydrogen Exporter: Challenges and Opportunities Ahead
Key Ideas
- Indonesia has the potential to become a hydrogen exporter, with an estimated surplus of four million tons by 2060, despite facing challenges like high capital costs.
- Global demand for hydrogen is expected to increase significantly, with projections indicating a rise to 660 million tons by 2060, primarily driven by the transportation sector.
- Domestic hydrogen demand in Indonesia is also set to grow, with projections reaching 6,282 TWh by 2060, driven by sectors like electricity, transportation, and industry.
- The Indonesian government is actively pursuing hydrogen development, issuing a National Hydrogen Strategy and working on regulations to support the establishment of hydrogen power plants.
Indonesia is poised to capitalize on its potential as a hydrogen exporter, with estimates suggesting a surplus of around four million tons by 2060. Despite this promising outlook, the country faces challenges, particularly related to the high weighted average cost of capital compared to other nations. Additional hurdles include the rising domestic energy demand fueled by economic growth and limited land availability for essential solar power plant development. Global demand for hydrogen is on the rise, with projections expecting it to reach 660 million tons by 2060, predominantly influenced by the transportation sector. Indonesia is also gearing up for increased hydrogen demand, with projections indicating a surge to 6,282 TWh by 2060, driven by the electricity, transportation, and industrial sectors. To support this growth, the Indonesian government has introduced a National Hydrogen Strategy and is actively working on regulations to facilitate hydrogen development, including the establishment of hydrogen power plants. The Ministry of Energy and Mineral Resources is leading these efforts by developing a National Hydrogen and Ammonia Road Map and revising regulations to accommodate the purchase of electricity from new energy sources like hydrogen.
Topics
Projects
Renewable Energy
Energy Transition
Economic Growth
Global Demand
Transportation Sector
National Hydrogen Strategy
Latest News