Sembcorp Industries’ wholly-owned subsidiary, Sembcorp Utilities, has signed a joint development study with Indonesian-state-owned utility company PT PLN (Persero) at the Singapore International Energy Week 2023. Witnessed by Rachmat Kaimuddin, the Indonesian deputy coordinating minister for infrastructure and transportation coordination and Ngiam Shih Chun, the CEO of Singapore’s Energy Market Authority (EMA), the agreement will explore the feasibility of green hydrogen production in Indonesia for export to Singapore.
According to the joint release, the facility could potentially produce up to 100,000 tonnes of green hydrogen per year in Indonesia using locally sourced renewable energy. The final product will be exported via subsea pipeline to Singapore. The project is expected to be Indonesia’s first green hydrogen export to Singapore.
“Hydrogen and its derivatives remain one of the most promising substitutes for natural gas in power generation. Through this partnership with Persero, we endeavour to 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,” says Wong Kim Yin, group president and CEO of Sembcorp.
“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,” adds Darmawan Prasodjo, president director of Persero.
Shares in Sembcorp closed 2 cents higher or 0.44% up at $4.60 on Oct 24.
