Sembcorp Utilities Pte Ltd, and Indonesian state-owned utility company PT PLN (Persero) have signed a joint development study agreement to explore the feasibility of green hydrogen production in Indonesia for export to Singapore. Sembcorp Utilities is a wholly-owned subsidiary of Sembcorp Industries (Sembcorp).

The facility could potentially produce up to 100,000 tonnes of green hydrogen per annum in Indonesia using locally sourced renewable energy, which will be exported via subsea pipeline to Singapore. The project is expected to be Indonesia’s first green hydrogen export to Singapore.

The signing was witnessed by Deputy Coordinating Minister for Infrastructure and Transportation Coordination, Republic of Indonesia, Rachmat Kaimuddin, and Singapore’s Chief Executive of the Energy Market Authority, Ngiam Shih Chun, at the Singapore International Energy Week 2023.

Wong Kim Yin, Group President & CEO, Sembcorp Industries, said, “Hydrogen and its derivatives remain one of the most promising substitutes for natural gas in power generation. Through this partnership with PT PLN (Persero), we endeavourto co-develop a viable low-carbon hydrogen supply chain in ASEAN that will diversify energy sources for both countries.This will support the decarbonisation of Singapore’s power sector as the country progresses towards its 2050 net-zero target.”

Darmawan Prasodjo, President Director of PT PLN (Persero) said, “PLN is fully committed to accelerating the energy transition towards greener energy to ensure a better future for the next generation. One of the concrete examples is through this partnership. We appreciate our partner, Sembcorp, and we are hoping for support from all parties to successfully implement future green energy projects in Indonesia and the Southeast Asian region.”