Sembcorp Industries, through its wholly-owned subsidiary Sembcorp Utilities, has entered into a joint development agreement (JDA) with PT PLN Energi Primer Indonesia, a sub-holding company of PT PLN (Persero), for a green hydrogen production facility in Sumatra, Indonesia.
According to an Oct 21 release, the facility is expected to produce 100,000 metric tonnes of green hydrogen per year and is set to become Southeast Asia’s largest green hydrogen development initiative.
The group says the project was developed to create a regional green hydrogen hub connecting Sumatra, the Riau Islands and Singapore.
The JDA, which was signed on Oct 21, is expected to build on the joint development study agreement between the two companies, which was announced on Oct 24, 2023.
The group adds that the first phase of the feasibility study, which focused on site selection, risk assessments, mitigation analysis and technical schematic development, has since been successfully completed.
Moving forward, both groups are set to enter the next phase of development, which focuses on the detailed engineering and commercial structuring of the project.
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The group says the project “reflects a shared vision for a sustainable energy future in Southeast Asia and is aligned with the aspirations of Singapore and Indonesia in fostering collaboration and innovation in the pursuit of clean energy”.
The JDA is not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending Dec 31.
Shares in Sembcorp closed 1 cent lower, or down 0.18%, at $5.51 on Oct 21.
