Indonesia's Potential as a Hydrogen Exporter: Challenges and Opportunities
Key Ideas
- Indonesia has the potential to become a hydrogen exporter with an estimated surplus of around four million tons by 2060.
- Challenges in hydrogen exports include higher weighted average cost of capital compared to other countries, rising domestic energy demand, and limited land for solar power plant development.
- Global demand for hydrogen is expected to rise steadily, with projections reaching 660 million tons by 2060 driven primarily by the transportation sector.
- The Indonesian government has issued a National Hydrogen Strategy and is developing a National Hydrogen and Ammonia Road Map to facilitate hydrogen development in the country.
Indonesia is poised to become a key player in the global hydrogen market, with estimates suggesting a surplus of approximately four million tons by 2060. However, challenges lie ahead for the country in harnessing this potential. Bagus Mudiantoro highlighted issues such as the higher weighted average cost of capital, escalating domestic energy demand fueled by economic growth, and the scarcity of land for essential solar power plant installations. On a global scale, the demand for hydrogen is on a trajectory of growth, with projections indicating a surge to 660 million tons by 2060, largely driven by the transportation sector. Indonesia itself anticipates a significant rise in hydrogen demand, with estimates reaching 469 terawatt-hours by 2050 and a staggering 6,282 terawatt-hours by 2060. To address these developments, the Indonesian government has put forth a National Hydrogen Strategy and is actively working on a roadmap for hydrogen and ammonia, as well as revising regulations to accommodate new energy sources like hydrogen power plants. These efforts signal a positive outlook for Indonesia's future as a hydrogen exporter and participant in the global energy transition.
Topics
Projects
Renewable Energy
Energy Transition
Energy Sector
Global Trends
Economic Growth
Government Strategy
Export Challenges
Hydrogen Demand
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