Indonesia is poised to become a significant hydrogen exporter, with projections indicating a surplus of around 4 million tons by 2060. However, Co-Director of Indonesia’s Low Carbon Energy Transition Program (Mentari), Bagus Mudiantoro, highlighted several challenges to achieving this export potential. "The main hurdle is the high weighted average cost of capital (WACC), which exceeds that of other countries," Mudiantoro said during a discussion held in Jakarta on Wednesday. Other challenges include the rising domestic energy demand due to economic growth and limited land availability, particularly for solar power plants crucial to hydrogen production.

Global hydrogen demand, according to Hydrogen Council data from 2022, is set to grow from 90 million tons in 2020 to 140 million tons by 2030, 385 million tons by 2040, and 660 million tons by 2060, with China as the leading consumer, followed by the U.S., India, Russia, and the UK. The transportation sector is expected to dominate this demand. In Indonesia, hydrogen demand is also anticipated to surge, with Pertamina NRE projecting 469 terawatt hours (TWh) by 2050, and Indonesia’s National Planning Agency (Bappenas) forecasting 6,282 TWh by 2060. The domestic demand will be primarily driven by the power, transportation, and industrial sectors. The Indonesian government has issued a National Hydrogen Strategy, detailing the current state and future goals for hydrogen development. Additionally, the Ministry of Energy and Mineral Resources (ESDM) is drafting the National Hydrogen and Ammonia Roadmap, establishing Indonesia’s hydrogen business classification, and revising regulations to accommodate electricity purchases from hydrogen power plants.

Source: https://www.antaranews.com/berita/4431469/indonesia-berpotensi-jadi-eksportir-hidrogen