COP29: Transforming Southeast Asia with Hydrogen Pipeline Innovation
Key Ideas
  • Sembcorp Industries and PLN Energi Primer Indonesia (PLN EPI) have inked a groundbreaking agreement to establish a hydrogen pipeline between Indonesia and Singapore.
  • This collaboration not only furthers the hydrogen ambitions of Singapore and Indonesia but also supports their national decarbonization strategies.
  • The project leverages the expertise of Transportasi Gas Indonesia (TGI) to create a regional hydrogen hub in Southeast Asia.
  • Feasibility studies and initial phases of the project have been successfully completed, marking a significant milestone in the development of hydrogen infrastructure in the region.
Sembcorp Industries, in partnership with PLN Energi Primer Indonesia (PLN EPI), has signed a pivotal agreement to pave the way for a hydrogen transportation pipeline connecting Indonesia and Singapore. The joint development framework agreement, announced at COP29, sets the stage for the establishment of a hydrogen pipeline linking Sumatra, the Riau Islands in Indonesia, and Singapore. The collaboration aims to drive the most substantial hydrogen development efforts in Southeast Asia and is a crucial step towards achieving the decarbonization goals of both countries. The agreement capitalizes on the capabilities of Transportasi Gas Indonesia (TGI), a key player in Indonesia's natural gas transportation sector, to facilitate the creation of a regional hydrogen hub. PLN EPI, a joint venture involving Pertamina Gas Negara and Transasia Pipeline Company, is a sub-holding of PLN (Persero) and TGI, strengthening the partnership's foundation. In addition to the pipeline project, Sembcorp and PLN EPI had previously disclosed plans for a 100,000 metric tons per year renewable hydrogen initiative in Indonesia. Following the successful completion of the initial feasibility study focusing on site selection, risk assessment, and technical development, the collaboration is now advancing to the detailed engineering and commercial structuring phase. The global hydrogen market landscape, as reflected by Platts, shows fluctuating prices for hydrogen production. Western Australia's hydrogen, produced via alkaline electrolysis, was priced at $2.47/kg on November 12, marking a 47% decrease from the previous month. Conversely, Japan's hydrogen cost rose by 4% to $4.99/kg within the same timeframe. This strategic partnership and infrastructure advancement underscore the commitment to innovation and sustainability in the energy sector, positioning Southeast Asia as a key player in the burgeoning hydrogen economy.
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