Monday, June 17, 2024 | 06:12 WIB

Indonesia holds the potential to become a global hydrogen player

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Jakarta, IO – State electricity company PLN corporate planning and business development director Hartanto Wibowo revealed that Indonesia’s domestic hydrogen prices are relatively cheaper if produced using hydropower plants (PLTA) to as low as US$4.16 per kg, per Katadata, Fri (17/5).

“The price of hydrogen in Japan is US$ 8 per kg, in South Korea it is US$ 7 per kg. So, we can become a global hydrogen player, there is no problem with that,” said Hartanto, adding that the only country that can compete with locally-produced hydrogen is China, at US$4 per kg.

He also calculated that hydrogen consumption, at Rp1,255 per km, is much more efficient than diesel, Dexlite and Pertamina Dex. However, he admitted that the price of hydrogen is still relatively expensive for public consumption. Thus, the government will strive to reduce the price of hydrogen.

One role model that Indonesia wish to emulate is the Netherlands, where there is widespread adoption of hydrogen. The country implement two strategies, namely incentives in the manufacturing sector and a carbon tax. To be exact, the Dutch government provides incentive worth US$1 million every year. This encourages industry to adopt hydrogen as fuel.

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“Second, bottom-up policy by forcing the use of hydrogen through the implementation of a carbon tax worth US$ 100 per ton. This allows energy transition to take place quickly. Our neighboring countries have also started using hydrogen,” he pointed out. (bp)

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