Green Hydrogen in Indonesia

18.07.2022

The growing scarcity of natural resources is a problem that has and will continue to haunt modern society. Naturally, efforts to conserve or find alternatives to these issues have been ever-present. As part of this effort, Green Hydrogen technology is increasingly gaining prominence as a massive breakthrough in clean, renewable energies.

The potential of hydrogen to replace fossil fuels used in all sorts of industrial processes and consumption is immense and can subsequently help realize economy-wide decarbonizations. Its versatility to multiple end-use sectors makes it an attractive driver for global energy transition and energy security through both decentralized production and consumption. 

It was thus interesting to watch the debate surrounding 鈥淣ikuba鈥, a device invented by a local citizen from West Java that could allegedly transform water to fuel for motor vehicles. Around May 2022, local and national news outlets began widely covering Mr. Aryanto Misel (67) from Lemahabang Wetan in Cirebon Regency, West Java, who developed the Nikuba independently and had gone on to sell more than 200 units of his device for the price of roughly US$166 each. 

The device itself functions based on a technique known as electrolysis. A process in which ionic substances in water (H2O) are broken down into Hydrogen (H2) and Oxygen (O2). Mr. Misel said he succeeded in developing a catalyst required to break down the H2O. Mr. Misel declined to share more information regarding the catalyst, calling it his trade secret. Subsequently, the news caught the attention of many experts, the majority of whom went on to debunk the claim of water-to-energy conversion. 

Regardless of the debate surrounding Nikuba, the idea of clean hydrogen as alternative energy cannot be dismissed. Various reports suggest that green hydrogen is a popular candidate to replace traditional fuels. A by the International Energy Agency (IEA) revealed that demand for hydrogen had grown more than threefold from 1975 until 2018. In addition, growing support in terms of policy for investment in hydrogen technologies is also increasing. Based on the IEA report, approximately 50 targets, mandates, and policy incentives are in place that directly supports hydrogen, with the majority focusing on transportation. 

Today, a significant number of countries are coming out with an actionable roadmap to develop renewable energies for Hydrogen-based economies. The Southeast Asian region in particular has significant potential for transitioning to green Hydrogen in the mid-to-long term, which would be both beneficial for the region's domestic consumption and global integration to the world economy. 

The Indonesian Ministry of Energy and Mineral Resources (MoEMR) encourages the development of green hydrogen to accelerate the transition to clean energy as Indonesia鈥檚 commitment to reduce greenhouse gas emissions by 29% on its own effort through the ratification of the Paris Agreement. This is to ensure the achievement of the Net Zero Emissions (NZE) target in 2060 or earlier can be achieved.