Sembcorp, PT PLN to develop SEA’s largest green hydrogen project

It has a production capacity of 100,000 metric tonnes yearly.

Sembcorp Industries (Sembcorp), through its wholly- owned subsidiary Sembcorp Utilities Pte Ltd, and PT PLN Energi Primer Indonesia (PT PLN EPI) have entered into a joint development agreement for a green hydrogen production facility in Sumatra, Indonesia.

The facility is set to be the largest in Southeast Asia, and will be able to produce 100,000 metric tonnes of green hydrogen per annum. It also aims to create a regional green hydrogen hub connecting Sumatra, the Riau Islands, and Singapore.

The agreement, which was signed at the Singapore International Energy Week 2024, builds on the joint development study agreement between the two companies which was announced on 24 October 2023. The first phase of the feasibility study, which focused on site selection, risk assessments, mitigation analysis and technical schematic development, has been completed.

Sembcorp and PT PLN EPI will proceed to the next phase of development, which involves detailed engineering and commercial structuring of the project.

The deal 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 31 December 2024.

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