Sembcorp Utilities, a wholly-owned subsidiary of Singapore’s Sembcorp Industries, and Indonesian state-owned utility company PT PLN (Persero) have signed a joint development agreement (JDA) to advance their green hydrogen production project in Sumatra, Indonesia.
The agreement follows the joint development study announced in October 2023 for the facility that could potentially produce up to 100,000 tons of green hydrogen per annum in Indonesia using locally sourced renewable energy. The produced hydrogen would be exported via a subsea pipeline to Singapore.
This project is expected to be Indonesia’s first green hydrogen export to Singapore as well as Southeast Asia’s largest green hydrogen development initiative, with the goal of creating a regional green hydrogen hub connecting Sumatra, the Riau Islands, and Singapore.
Following the first phase of the feasibility study, which focused on site selection, risk assessments, mitigation analysis, and technical schematic development, Sembcorp and PT PLN EPI will now progress to the next phase, which involves detailed engineering and commercial structuring of the project.
Meanwhile, Sembcorp’s subsidiary Sembcorp Green Hydrogen India is investigating opportunities for renewable energy and green hydrogen projects across India through discussions with Bharat Petroleum Corporation Limited (BPCL) to secure a definitive joint venture agreement.