Singapore’s Sembcorp Utilities Pte Ltd and Indonesian state-owned utility company PT PLN have signed a joint development study agreement to explore the feasibility of green hydrogen production in Indonesia for export to Singapore. Sembcorp Utilities is a wholly-owned subsidiary of Sembcorp Industries. The facility could produce up to 100,000 tons of green hydrogen annually in Indonesia using locally sourced renewable energy, which will be exported via subsea pipeline to Singapore. The project is expected to be Indonesia’s first green hydrogen export to Singapore.
The President & CEO of Sembcorp Industries said that hydrogen and its derivatives remain one of the most promising substitutes for natural gas in power generation. Through this partnership with PT PLN, Sembcorp Industries endeavors to co-develop a viable low-carbon hydrogen supply chain in ASEAN that will diversify energy sources for both countries. This will support the decarbonization of Singapore’s power sector as the country progresses towards its 2050 net-zero target.
Meanwhile, the President Director of PT PLN stated that PLN is committed to accelerating the energy transition towards. One of the concrete examples is through this partnership. The signing of the joint development study agreement 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 December 31, 2023.
(Source: Sembcorp Industries)