Indonesia Plans Green Hydrogen Development Amid Fossil Fuel Reliance
The Indonesian government is set to develop green hydrogen as part of its national development plan for 2025-2045, with a roadmap established by the Ministry of Energy and Mineral Resources targeting production goals of 1.4 kilotonne of oil equivalent by 2030 and 31.2 Ktoe by 2040. The initiative aims to enhance institutional frameworks and reduce production costs, particularly for large transport vehicles and ammonia fertilizers, though challenges such as high costs and the need for supportive policies remain.
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The Indonesian government is planning to develop green hydrogen as part of its long-term national development plan for 2025-2045. The Ministry of Energy and Mineral Resources (KESDM) is creating a roadmap for hydrogen by 2025-2029, targeting 1.4 kilotonne of oil equivalent (Ktoe) by 2030 and 31.2 Ktoe by 2040.
The initial phase focuses on strengthening institutional and regulatory foundations, supported by Government Regulation No. 40/2025 on National Energy Policy. Challenges include high costs and the need for technological advancements.
Pertamina aims to reduce hydrogen production costs through innovative technologies. The use of green hydrogen is expected to initially target large transport vehicles and ammonia production for fertilizers. However, significant barriers remain, including the high price of green hydrogen compared to grey hydrogen and the necessity for supportive policies and incentives.
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