Indonesia Aiming for $25.2 Billion Investment in Green Hydrogen by 2060
Key Ideas
- Indonesia targets $25.2 billion in private sector investment for green hydrogen by 2060 to prevent an energy crisis and reduce CO2 emissions by 912 million tons by 2030.
- Green hydrogen production costs are high but have significant business potential compared to conventional hydrogen, as stated by Dendy Apriandi from the Ministry of Industry.
- Pertamina, a state-owned oil and gas company, is investing $11 billion in green hydrogen to meet green energy development goals in Indonesia.
- Green hydrogen, produced through electrolysis with renewable energy sources, has the potential to replace fossil fuels in heavy industry, transport, and energy storage, reducing carbon emissions.
Indonesia has set a target to attract $25.2 billion in private sector investment by 2060 for the development of green hydrogen, as announced by the Ministry of Industry in Jakarta. This initiative aims to address potential energy shortages in the industrial sector while simultaneously aiding in the reduction of carbon dioxide emissions. By aiming to slash CO2 emissions by 912 million tons by 2030, Indonesia is making a significant commitment to environmental sustainability. Dendy Apriandi, the Director of Investment Deregulation at the Ministry of Industry, highlighted the promising business opportunities associated with green hydrogen despite its current high production costs. Noteworthy among the investors in this sector is Pertamina, a state-owned oil and gas company, which has dedicated $11 billion towards achieving its green energy development objectives. Green hydrogen, a clean and emission-free fuel, is produced by electrolysis, a process that involves splitting water into hydrogen and oxygen utilizing electricity generated from renewable sources such as solar, wind, or hydropower. This method is recognized as one of the most environmentally friendly ways to produce hydrogen. The versatility of green hydrogen positions it as a potential substitute for fossil fuels, primarily in heavy industry, long-haul transportation, and as a means for long-term energy storage. Overall, the adoption of green hydrogen signifies a crucial step towards reducing carbon emissions and transitioning towards a more sustainable energy future.
Topics
Middle East
Renewable Energy
Sustainability
Investment
Energy
Carbon Reduction
State-owned Company
Industrial Sector
Emission-free Fuel
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