IESR: Indonesia Needs US$25 Bln to Produce 52-GW Green Hydrogen Plant


The Institute for Essential Services Reform (IESR) revealed to meet the target of generating 328 megawatts (MW) of electricity from green hydrogen plants by 2030, Indonesia would need around US$800 million worth of investment. Meanwhile, to boost the generating capacity of green hydrogen plants to 52 gigawatts (GW) by 2060, Indonesia would need up to US$25 billion.

Apparently, the high cost of the water electrolysis technology used in a green hydrogen power plant to separate hydrogen from water (H2O) hampers its development. IESR noted that the cost of producing green hydrogen in Indonesia could reach around US$3-12 per kilogram (kg), depending on the technology used and the project's location. The cost of green hydrogen production in the future may drop to around US$2 per kg, following the competition between hydrogen from fossil fuels and hydrogen from carbon capture storage (CCS)/carbon capture utilization and storage (CCUS) technology or commonly called blue hydrogen.

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