economy

Kemenperin: Boosting Green Hydrogen Development To Speed Up Industry's NZE Goals

Amid the challenges of climate change, Indonesia is taking steps to gradually reduce greenhouse gas (GHG) emissions. The country has ramped up its commitment to cutting GHG emissions through the Enhanced Nationally Determined Contribution (E-NDC) document. To support this effort in the industrial sector, the Ministry of Industry is dedicated to achieving Net Zero Emission (NZE) targets by 2050, which is a decade earlier than the national NZE goal.

"The global energy crisis and Indonesia's commitment to lowering GHG emissions should be a wake-up call for industry players, especially in finding low-carbon energy solutions. Developing green hydrogen is one strategy to meet the industrial NZE target by 2050," said Acting Director General of Chemical, Pharmaceutical, and Textile Industry (IKFT) Reni Yanita during the 2024 Joint Meeting of Central and Regional Boards of the Indonesian Gas Industry Association (AGII) in Jakarta on Tuesday (10/9).

Reni is optimistic that by replacing fossil fuel-based materials with those from renewable sources, the NZE target can be accelerated. "Hydrogen is an eco-friendly fuel alternative and an ideal energy storage medium, especially when generated from renewable energy sources (green hydrogen)," she explained.

Moreover, hydrogen serves as a link in a sustainable and emission-free energy chain from start to finish. The rise of hydrogen as a green fuel alternative also presents opportunities for future development for gas industry producers. However, large-scale hydrogen use requires reliable, safe, adequate, and cost-effective infrastructure for production, storage, and transportation to end users.

So, the industry really needs to gear up to seize this opportunity by getting the right infrastructure and tech in place that meets safety standards to create a hydrogen ecosystem in Indonesia, she added. Reni pointed out that AGII, which is the platform for industrial gas producers in Indonesia, has been doing a fantastic job as a gas supplier since 1972. “We also want to give a shout-out to the industrial gas producers who stepped up during the Covid-19 pandemic by directing all their oxygen production to hospitals to help the people of Indonesia,” she said. Looking ahead to Indonesia Emas in 2045, which aims for sovereignty and sustainable growth in the industrial sector, the Ministry of Industry hopes AGII will keep pushing its members to expand so that Indonesia can independently meet its industrial gas needs without relying on imports. “We also expect them to actively support the development of eco-friendly renewable energy like hydrogen,” she emphasized. AGII Chairman Rachmat Harsono mentioned that with the rising global demand for cleaner and more sustainable energy, hydrogen is becoming a key future solution due to its low carbon emissions. Given Indonesia's abundant natural resources, the country is in a prime position to lead this change. “However, we also recognize that realizing this potential won't be easy. It will require technological innovation, investment, and close collaboration among the government, industry, and various stakeholders,” he noted. Therefore, AGII has a significant responsibility to back the green hydrogen initiative, focusing on both technology and workplace safety.

Tag: Greenhouse Gas Kemenperin Net Zero Emission