Feasibility study by Black & Veatch proposes green hydrogen plant in Indonesia

A recent feasibility study conducted by Black & Veatch, a leader in critical infrastructure solutions, has outlined the technical and economic potential for a large-scale green hydrogen plant in Indonesia. The study, carried out for Augustus Global Investment (AGI), is a significant step towards Indonesia’s energy transition goals.

The proposed project focuses on generating green hydrogen using electrolyzers that would be powered by renewable energy sources provided by the grid. This move aligns with Indonesia’s strategy to harness its vast renewable resources, including solar, hydropower, and geothermal energy, to reduce carbon emissions and foster a sustainable energy economy.

In the study, Black & Veatch delivered detailed plant configuration insights, technology analyses, and cost estimation for hydrogen generation and storage, concluding that the initiative could be technically and financially viable. The project’s estimated investment reaches around USD 500 million, reflecting the scale and ambition behind Indonesia’s commitment to its clean energy future.

Narsingh Chaudhary, President of Asia Pacific and India at Black & Veatch, highlighted Indonesia’s abundant energy resources and stated, “With Indonesia’s vast energy and renewable resources including geothermal energy, there is great potential for this project to be a catalyst in creating a long-term hydrogen economy in Indonesia over this next decade.”

The green hydrogen plant is projected to be constructed within the Arun Lhokseumawe Special Economic Zone (SEZ) in Aceh province, with an anticipated daily production capacity of 98.5 tons of hydrogen and a total output of 300 megawatts (MW).

Fadi Krikor, CEO of AGI, voiced the firm’s enthusiasm about the Indonesian market: “Augustus sees worldwide prospects for long-term investment in the infrastructure and energy sectors. We are thrilled to invest in Indonesia and support the nation’s transition to a clean energy future.”

Black & Veatch’s commitment to green hydrogen is further demonstrated by its current projects, which include building one of the world’s largest industrial green hydrogen production and storage facilities on a turnkey basis. With a hand in constructing 245 MW of electrolysis capacity, the company is set to nearly double the global green hydrogen production capacity.

Moreover, at Enlit Asia 2023, Chaudhary is slated to present a strategic roadmap designed to achieve net-zero emissions, further showcasing Black & Veatch’s active role in shaping Southeast Asia’s energy systems toward a more sustainable future.