Indonesia’s PLN Collaborates with HDF Energy for Hydrogen Power Plants
The signing of the Joint Development Study Agreement between PLN and HDF Energy. | Photo: PLN.
In recent years, multiple sectors have been focusing on reducing their greenhouse gas emissions, including electricity. The sector, known as one of the major contributors to global greenhouse gas emissions, has been slowly shifting into low-carbon products, services, and infrastructures. In this light, Indonesia’s state electricity company PLN has strengthened cooperation with French energy company HDF Energy to decarbonize the electricity sector by developing hydrogen power plants.
Both companies signed the Joint Development Study Agreement during the COP28 at the Indonesia Pavilion in Dubai, United Arab Emirates, on December 3, 2023.
CO2 Emissions from Electricity
Globally, Indonesia is the ninth biggest carbon dioxide (CO2) emitter in the electricity sector, reaching 193 million tonnes in 2021. At the national level, the electricity sector is the biggest CO2 contributor, with a proportion of 43%. The number is almost equal to the CO2 emissions from the transport sector (25%) and industry sector (23%) combined.
The high level of CO2 emissions from the sector primarily comes from using fossil fuels in electricity production. Indonesia is the fourth largest producer and biggest exporter of coal, reaching 455 million tons in 2019. In 2021, the energy mix in the country was still predominantly fossil fuels (71%), while renewable energy only contributed a small portion of the total primary energy mix.
Indonesia signed the Global Coal to Clean Power Transition Statement during COP26, committing to a coal phase-out by 2040 with international financial and technical support. In the longer term, the country has targeted carbon neutrality by 2060. However, the current development shows that acceleration is needed to achieve the target through various strategies and steps.
Hydrogen Power Plants
The Joint Development Study Agreement between PLN and HDF Energy was built upon the agreed-upon cooperation in April 2023. Through this agreement, PLN will conduct a joint study with HDF Energy to evaluate the technical and financial feasibility of the Renewstable® hydrogen power plants. This agreement opens a door for exploring various hydrogen applications according to society’s needs and local resources.
The PLN-HDF Energy collaboration aims to accelerate the implementation of Renewstable® hydrogen power plants, multi-megawatt power plants that produce more stable, sustainable, and environmentally friendly energy. Electricity will be produced by combining intermittent renewable energy sources with long-term energy storage in the form of green hydrogen. Currently, 23 projects are being developed by HDF Energy in eastern Indonesia. The first project was built in Sumba, East Nusa Tenggara.
Through this cooperation, PLN will develop the green hydrogen industry, where green hydrogen will be produced and then converted to electricity and other products, such as green ammonia. This cooperation also aligns with the launching of the Green Hydrogen Plant at several steam-electric power plants and combined cycle power plants deemed capable of producing 100% green hydrogen, amounting to 199 tons annually.
Ensuring a Just Energy Transition
PLN will deploy innovation to increase the production scale of green hydrogen, which is said to be one of the essential aspects of energy transition. “PLN has thousands of assets throughout Indonesia. In the future, we will prepare [those assets] as the locations of green hydrogen facilities so that it doesn’t only produce 199 tons per year, drive 424 fuel cell cars, reduce 3,700 tons of emissions per year but much more,” said Darmawan Prasodjo, the President Director of PLN.
Still, the project’s implementation monitoring and impact evaluation are crucial to ensure that green hydrogen development can lead to a just, sustainable, and safe energy transition.
Translator: Kresentia Madina
Editor: Nazalea Kusuma
The original version of this article is published in Indonesian Green Network Asia – Indonesia.
Abul Muamar
Amar is the Manager of Indonesian Digital Publications at Green Network Asia. He holds a Master’s degree in Philosophy from Universitas Gadjah Mada and a Bachelor’s degree in Communication Studies from Universitas Sumatera Utara. He has over ten years of professional experience in journalism as a reporter and editor for several national-level media companies in Indonesia. He is also a writer, editor, and translator with a particular interest in socio-economic and environmental issues.
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