Indonesia projects hydrogen surplus by 2060, plans for export

Jakarta (ANTARA) - Indonesia has the potential to become a hydrogen exporter, with estimates indicating a surplus of around four million tons of hydrogen by 2060, according to an official.

However, the country faces several challenges in hydrogen exports, said Bagus Mudiantoro, co-director of the Program Towards Indonesia’s Low Carbon Energy Transition.

“The biggest challenge is the weighted average cost of capital, which is higher than in other countries,” he said during a discussion in Jakarta on Wednesday.

He noted additional challenges, including the rising domestic energy demand due to economic growth and limited land, especially for developing solar power plants essential for hydrogen production.

Data from the Hydrogen Council in 2022 shows that global demand for hydrogen is expected to rise steadily, reaching 140 million tons by 2030 from 90 million tons in 2020.

Demand is projected to further increase to 385 million tons by 2040 and 660 million tons by 2060.

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China is currently the world’s largest hydrogen consumer, followed by the United States, India, Russia, and the United Kingdom.

It is expected that the transportation sector will primarily drive global hydrogen demand.

In Indonesia, hydrogen demand is also anticipated to grow.

According to data from Pertamina New and Renewable Energy (NRE), domestic hydrogen demand is projected to reach 469 terawatt-hours (TWh) by 2050. Meanwhile, the National Planning Agency (Bappenas) estimates demand will reach 6,282 TWh by 2060.

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Domestic hydrogen demand is expected to be driven by the electricity, transportation, and industrial sectors. The Indonesian government has issued a National Hydrogen Strategy, outlining the current state, direction, and objectives for hydrogen development in the country.

The Ministry of Energy and Mineral Resources is also developing a National Hydrogen and Ammonia Road Map and establishing the Indonesian Standard Classification of Business Fields (KBLI) for hydrogen.

Additionally, the ministry is revising Government Regulation Number 14 of 2012 to add provisions for purchasing electricity from new energy sources, including hydrogen power plants.