Implications of low-carbon hydrogen production on renewable energy systems webinar, 30 March 2023, Paris, CEFIM, OECD

1. 1
1
Dewan Energi Nasional @dewanenergi dewanenergi dewan energi
www.den.go.id
The Opportunities and Challenges
of Renewable Energy Integration With Low-Carbon
Hydrogen Production In Indonesia
Prepared for the OECD Webinar on The Integration of Renewable Energy and Hydrogen Development”
Dr. Ir. Herman Darnel Ibrahim, M.Sc., IPU
Board Member of National Energy Council
March 30, 2023

2. 2
2
Dewan Energi Nasional @dewanenergi dewanenergi dewan energi
www.den.go.id
§ In Indonesia, hydrogen development is still at
the Research and Pilot Project stage, there
are no Hydrogent Plants and User yet.
§ Cooperation in the development of green
hydrogen:
• Pertamina and GIZ [Germany] cooperation
in developing a green hydrogen pilot
project from geothermal energy.
• BRIN and Toshiba [Japan] cooperation
§ Future Step Issuance of Supporting
Regulation for Hydrogen Development
[Technical Standards and Incentives]
§ Solar Energy in East Nusa Tenggara: Sumba
§ Hydro Energy in North Kalimantan, and Papua
§ Geothermal Energy in Sumatera and North
Maluku
§
2007
Researchs on hydrogen
development as
alternatives fuel [BPPT,
UI, ITB, LEMIGAS]
2012
• Concept Car with Fuel Cell
[Antasena – ITS]
• 300 kW Fuel Cell Pilot
Project in Ancol by KOICA
Formation of
Indonesian Association
for Fuel Cell and
Hydrogen Energy
[INAFHE]
2014
2017
Fuel Cell as back up power
for Base Transceiver Station
[PT Telkomsel]
2018
MoU on Development of
H2One Autonomous
Hydrogen Energy System for
Off Grid System [BPPT and
Toshiba ESS]
2019
The Development of
Hydrogen-fueled Trains
[Cooperation between
ALSTOM-PT KAI-ESDM ]
Status of Hydrogen Development in Indonesia
RE Source For Low Carbon Hydrogen
Considerations for Hydrogen Utilization
§ Investment for Hydrogen Plant production
§ Development of Hydrogen Market [Demand]
§ The economy of Hydrogen production and
utilization
Challenges
§ Hydrogen amongst new type of energy
§ Creating demand for electricity [over supply]
§ Creating new market for un tapped RE
§ To reduce fossil fuel usage in transportation
§ Hydrogen can be the solution to offgrid energy
storage system
§ Hydrogen has higher energy density than battery
Skema Pengembangan Hidrogen oleh PT HDF Energi. Sumber: PT HDF
Energi
2
STATUS OF HYDROGEN DEVELOPMENT IN INDONESIA
Source: DJ EBTKE, 2023

3. 3
3
Dewan Energi Nasional @dewanenergi dewanenergi dewan energi
www.den.go.id
SCENARIO OF HYDROGEN CONSUMPTION IN INDONESIA [Energy Policy Draft]]
In the energy transition scenario, hydrogen is expected to be utilized in transportation and industrial sector.
0,0 0,0
2,5
5,4
8,4
11,3
14,3
17,2
0,0
1,3
3,2
4,6
5,3
7,9
11,6
0,0 0,0
3,8
8,6
13,0
16,6
22,2
28,8
0
5
10
15
20
25
30
35
2025 2030 2035 2040 2045 2050 2055 2060
MTOE
Hidrogen untuk Transportasi Hidrogen untuk Industri Total Pemanfaatan Hidrogen
Hydrogen Utilization 2030 2035 2040 2045 2050 2055 2060
Transportation 0.0 2.5 5.4 8.4 11.3 14.3 17.2
Industry 0.0 1.3 3.2 4.6 5.3 7.9 11.6
Total Hydrogen 0.0 3.8 8.6 13.0 16.6 22.2 28.8
Final Energy Consumption 261 306 342 376 405 425 445
§ The hydrogen in the
energy transition
scenario model is
assumed to be blue
hydrogen due to
current economic
consideration that
blue hydrogen is
cheaper than green
hydrogen.
§ However, it is
expected that the
production cost of
green hydrogen will
decrease
significantly and will
be able to compete
with blue hydrogen
Source: Energy transition model, DEN & ITB 2023

4. 4
4
Dewan Energi Nasional @dewanenergi dewanenergi dewan energi
www.den.go.id
• The cost of producing green hydrogen is
projected to continue to decrease 1.8 times by
2030 and get cheaper 3 times by 2050.
• The cost of producing blue hydrogen is likely to
remain unchanged until 2050.
SCENARIO OF GREEN HYDROGEN UTILIZATION [Energy Policy Draft]
Green Hydrogen has the opportunity to replace fuel for power generation, transportation and industry
Assumption of Hydrogen Production Cost
Sumber: Noussan, Michel et al, 2021, “The Role of Green and Blue Hydrogen in the
Energy Transition – A Technological and Geopolitical Perspective”, MDPI.
Picture’s source: IRENA 2018
4
1
Hydrogen Utilization
Green Hydrogen will be used as
a fuel in passenger vehicles,
heavy vehicles and power
plants, and also as energy
storage
2 In 2030, green hydrogen
demand in industrial sector is
estimated to be around 210 -
300 ktH2 / year, if added with
demand in transportation and
power generation sectors, then
the need for green hydrogen
may reaches more than 400
ktH2 / year.
Currently, the use of hydrogen
for power generation is
relatively more expensive
[when compared to coal-fired or
natural gas power plants]
3
Sumber: IEA 2019
Source: DJ EBTKE, 2023

5. 5
5
Dewan Energi Nasional @dewanenergi dewanenergi dewan energi
www.den.go.id 5
• Green Hydrogen development
initiative of hybrid Solar PV &
Wind PP on Sumba Island by
PT HDF Energi: 7-8 MW
daytime capacity from Solar PV
and 1-2 MW at night from
hydrogen storage.
• Preliminary study results show
competitive price for generation
costs
• FFI [Fortesque Future Inndustry]
through its representative, PT
IFI, plans to build a green
hydrogen [gH2] industry along
with transportation and
distribution infrastructure in
North Kalimantan.
• The source of energy to produce
hydrogen will be from
hydropower plants [ with captive
scheme].
• A new domestic market that
uses green hydrogen will be
created.
• Funding for the project from
initial assessment, construction,
to operation will be borne by
FFI.
• Based on the Desk Study, In
2045 the estimated hydrogen
demand for the transportation
sector in the new capital city
of Indonesia is 3952.38 tons
in 2045, while for industrial
sector the number is
estimated to be 21,024 Tons.
Based on Appendix II of Law 3/2022
on the New National Capital [New
Capital City Master Plan]:
Transportation
Public transport in IKN fueled by
electricity or hydrogen
Energy Infrastructure
IKN is planned to use a mixture of
hydrogen gas and natural gas as a
source of city gas
POTENTIAL PROJECTS OF GREEN HYDROGEN IN INDONESIA
Source: DJ EBTKE, 2023

6. 6
6
Dewan Energi Nasional @dewanenergi dewanenergi dewan energi
www.den.go.id
STUDY AND TRIAL OF HYDROGEN AND AMMONIA CO-FIRING BY PLN GROUP
Source: PLN Persero, 2023

7. 7
7
Dewan Energi Nasional @dewanenergi dewanenergi dewan energi
www.den.go.id
THANK YOU
TERIMA KASIH
DEN, THE NATIONAL
ENERGY COUNCIL
OF INDONESIA

8. 8
8
Dewan Energi Nasional @dewanenergi dewanenergi dewan energi
www.den.go.id
TOPIC FOR THE SPEAKERS