Sembcorp and PT PLN EPI Partner to Build Largest Green Hydrogen Facility in Southeast Asia
Key Ideas
  • Sembcorp and PT PLN EPI have signed a joint development agreement for a green hydrogen production facility in Sumatra, Indonesia.
  • The facility aims to be the largest in Southeast Asia, with a production capacity of 100,000 metric tonnes of green hydrogen per year.
  • The project will create a regional green hydrogen hub connecting Sumatra, the Riau Islands, and Singapore, enhancing sustainability in the region.
  • The agreement signifies a step towards promoting green energy and reducing carbon footprint in Southeast Asia.
Sembcorp Industries (Sembcorp), in collaboration with PT PLN Energi Primer Indonesia (PT PLN EPI), has embarked on an ambitious project to establish the largest green hydrogen production facility in Southeast Asia. The facility, located in Sumatra, Indonesia, is expected to have a production capacity of 100,000 metric tonnes of green hydrogen annually. This partnership aims to create a regional green hydrogen hub that will connect Sumatra, the Riau Islands, and Singapore, thereby promoting sustainability and green energy initiatives in the area. The joint development agreement, signed at the Singapore International Energy Week 2024, builds upon a previous announcement regarding a joint development study agreement between the two companies. The completion of the first phase of the feasibility study, focusing on aspects like site selection, risk assessments, and technical schematic development, has paved the way for the detailed engineering and commercial structuring phase of the project. Despite the scale of the undertaking, the deal is not expected to significantly impact the financials of Sembcorp for the year ending 31 December 2024. This collaboration represents a significant stride towards advancing green energy solutions and reducing the carbon footprint in Southeast Asia. The establishment of the green hydrogen facility underscores a shared commitment to sustainable practices and innovation in the region, setting a positive example for similar initiatives in the future.
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