Sembcorp inks deal to produce green hydrogen with Indonesia’s PLN

The facility in Sumatra will churn out 100,000 metric tonnes of green hydrogen a year

SEMBCORP Industries said on Monday (Oct 21) that its wholly owned subsidiary, Sembcorp Utilities, is partnering with Indonesian government-owned electricity producer PLN’s sub-holding company, PLN Energi Primer Indonesia, on a green hydrogen production facility.

The facility, to be sited in Sumatra, will produce 100,000 metric tonnes of green hydrogen a year, the company said in a bourse filing.

The two sides signed a joint-development agreement at the Singapore International Energy Week 2024, which runs this week at Singapore’s Sands Expo and Convention Centre. The agreement follows a joint-development study agreement between the two companies, announced a year ago.

The next phase of the project will entail detailed engineering and commercial structuring of the project.

Sembcorp said the project comes under the broader push for a regional green hydrogen hub connecting Sumatra, the Riau Islands and Singapore.

Sembcorp shares fell 0.2 per cent or S$0.01 to S$5.51, before the announcement was made.