HDF Energy and DFC to develop green hydrogen plants in Indonesia

Announced on the sidelines of the G20 summit, this cooperation is part of a strategic partnership, including 13 initiatives, between the US and Indonesia to tackle the climate crisis and promote access to affordable food and energy. It was announced by the US President, Joe Biden, after holding a meeting with Indonesian President Joko Widodo on 14 November 2022 at the G20 summit.

As an island nation, Indonesia is highly vulnerable to the effects of climate change. The majority of Indonesia’s energy today comes from fossil fuels, with coal, oil, and gas contributing to over 90% of the country’s energy. Many parts of the country depend on isolated grids powered by diesel fuel, especially in Eastern Indonesia (in the regions of East Nusa Tenggara, Papua and Maluku) where HDF Energy has a local presence.

Renewstable multi-megawatt power plants, invented and developed by HDF Energy, could provide a solution to this problem. Renewstable plants produce entirely non-intermittent, renewable and dispatchable electricity 24 hr/d. They combine an intermittent, renewable source and mass, long-term storage of energy through a hydrogen chain, the green alternative to a classic diesel fuel power plant as they only use solar energy and water to produce stable electricity thus avoiding greenhouse emissions and noise.

DFC has committed to providing technical assistance grant funding to HDF Energy to support the development of a portfolio of Renewstable projects in Indonesia. DFC’s technical assistance will go toward various technical studies and feasibility studies for HDF Energy’s pipeline of 22 Renewstable projects in Indonesia, for an investment amount of US$1.5 billion, with support from development institutions. The first and most advanced project is situated on the island of Sumba, a 10 MW Renewstable power plant – the cornerstone of the Indonesian government's sustainable development programme on Sumba Iconic Island. To deliver these studies, HDF and DFC are optimising the engagement of local technical consultants as a way of improving understanding on how hydrogen addresses power sector in the region. These projects will locally create green jobs, thus also contributing to the regional and national economy of Indonesia.

In October 2022, HDF Energy signed a Memorandum of Understanding (MoU) with PT Nusantara Power, a subsidiary of PT PLN Persero (the Indonesian state-owned electric utility), to create synergies on efforts, resources and expertise needed for the study and development of green hydrogen projects. These include HDF Energy’s 22 Renewstable® projects for which DFC will provide technical assistance. In addition to this, both companies will also consider the implementation of hydrogen peaking plants to reduce usage of fossil fuel on existing power plants. The collaboration between HDF Energy and PT PLN Nusantara Power (ex PJB) will allow to accelerate the development of these hydrogen projects.

Mathieu Geze, President Director, PT HDF Energy Indonesia, declared: “Indonesia is facing unique constraints due to its archipelago context. Our partnership with DFC, combined with our cooperation with PT PLN Nusantara Power (ex PJB), is an important step forward in the development of Renewstable power plants in Indonesia. These plants could assist Indonesia to decarbonise its grids, by reducing diesel consumptions, while accompanying the Government agenda to support the economic development of Eastern Indonesia. Our projects pipeline emphasises HDF’s leadership position in the global green hydrogen market, and will make Indonesia become a leader of green hydrogen projects in Asia”.

DFC Chief Climate Officer, Jake Levine, said: “DFC’s technical assistance will support HDF Energy as they tackle the first phase of developing innovative clean energy and energy storage projects in Indonesia. HDF's Renewstable solution is the kind of innovation that will be critical to supporting the global clean energy transition, and DFC is thrilled to support the early stages of this project that has the potential to become a game-changing climate solution.”

Muhamad Reza, Director for Business Development and Commerce, PT PLN Nusantara Power, added: “HDF’s Renewstable solution combining VRE (Variable Renewable Energy), battery and hydrogen storage offers a green alternative to diminishing the diesel consumption in Eastern Indonesia. We are keen to understand the projects’ feasibility and explore potential future collaboration with HDF Energy.”

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/25112022/hdf-energy-and-dfc-to-develop-green-hydrogen-plants-in-indonesia/