Indonesia's Ambitious $25.2 Billion Green Hydrogen Investment Goal
Key Ideas
- Indonesia targets $25.2 billion in private sector investments for green hydrogen by 2060 to prevent an energy crisis and reduce CO2 emissions by 912 million tons by 2030.
- Green hydrogen, produced through electrolysis using renewable energy sources, is seen as a cleaner alternative to conventional hydrogen with high business potential.
- State-owned company Pertamina is a significant investor in green hydrogen, allocating $11 billion to meet green energy development targets in Indonesia.
- Green hydrogen holds promise in replacing fossil fuels, reducing carbon emissions, and finding applications in heavy industry, long-haul transport, and energy storage.
Indonesia, specifically Jakarta, is setting ambitious targets in the green hydrogen sector, aiming to secure $25.2 billion in private sector investments by the year 2060. This initiative, led by the Ministry of Industry, is crucial not only to avert potential energy crises in the industrial sector but also to make significant strides in reducing carbon dioxide emissions. The country has set a goal to cut CO2 emissions by a substantial 912 million tons by 2030, showcasing a strong commitment to sustainability. Dendy Apriandi, the Director of Investment Deregulation at the Ministry of Industry, highlighted the favorable business potential of green hydrogen compared to traditional methods despite the current high production costs.
One of the key players in this green transition is Pertamina, a state-owned oil and gas company that has earmarked $11 billion towards achieving its green energy objectives. Green hydrogen, derived from the electrolysis of water using renewable energy sources like solar, wind, or hydropower, is viewed as an emission-free fuel that could revolutionize the energy landscape. Its applications in heavy industry, long-haul transport, and energy storage present a promising avenue for reducing reliance on fossil fuels and mitigating carbon emissions. The process of electrolysis is considered the most sustainable way to produce hydrogen, positioning green hydrogen as a frontrunner in the quest for cleaner energy alternatives.
Topics
India
Renewable Energy
Sustainability
Investment
Carbon Reduction
Industrial Development
State-owned Companies
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