Challenges and Opportunities of Green Hydrogen Production in Indonesia

Abstract

Global climate change necessitates deep decarbonization of all economic sectors due to significant greenhouse gas emissions. Indonesia has committed to reduce emissions by adding the share of renewable energy contribution to the nation's energy mix. Hydrogen emerged as a key element in the energy transition due to its environmentally friendly and diverse applications in energy and industry sectors. This analysis examines the challenges and opportunities of Green Hydrogen (GH2) production in Indonesia to achieve the nation's carbon reduction and sustainability goals. By leveraging the enormous renewable energy potential, Indonesia is economically viable to implement GH2 production starting in 2031, aligning with the National Hydrogen Strategy. The study highlights the potential benefits of GH2, such as reducing greenhouse gas emissions, supporting net zero targets, creating green jobs, and increasing renewable energy integration. Additionally, the analysis emphasizes the importance of government support in technical regulations, pricing policies, incentives, and infrastructure development to accelerate the green hydrogen transition and establishment.

Keywords: Green Hydrogen, Renewable Energy, Sustainability