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🇮🇩 Indonesia /Energy & Infrastructure

Oil supply crunch to boost hydrogen competitiveness, says Indonesian minister

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

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  • Indonesia's Energy Minister Bahlil Lahadalia predicts hydrogen fuel will become more competitive due to geopolitical turmoil and oil supply issues.
  • He acknowledged current high costs but believes global factors will drive down hydrogen prices, making it a viable alternative to fossil fuels.
  • Developing a hydrogen ecosystem is seen as crucial for Indonesia's energy self-sufficiency and aligns with the president's directive to transition to renewable energy.

Indonesia's Energy and Mineral Resources Minister Bahlil Lahadalia forecasts that hydrogen fuel will soon become significantly more competitive against traditional fuels, driven by global geopolitical instability and a tightening oil supply.

Speaking at the Global Hydrogen Ecosystem Summit & Exhibition in Jakarta, Lahadalia stated, "It won't be long before hydrogen prices are much more competitive with other fuel sources." He acknowledged that hydrogen currently faces a cost challenge compared to other energy products. For instance, he compared its price to B50 biodiesel for industrial use, noting that hydrogen is currently slightly more expensive per liter for applications like buses, where B50 achieves 3.5–4 km per liter.

However, Lahadalia emphasized that ongoing geopolitical conflicts, particularly in the Middle East, and difficulties in securing oil from new sources are poised to alter this economic landscape. These factors, he believes, will naturally drive down the cost of hydrogen, making it a more attractive option.

It won't be long before hydrogen prices are much more competitive with other fuel sources.

— Bahlil LahadaliaThe Energy and Mineral Resources Minister spoke about the future competitiveness of hydrogen fuel.

The minister highlighted that fostering a robust hydrogen ecosystem is a critical step toward achieving national energy self-sufficiency. This initiative also directly supports President Prabowo Subianto's directive to transition away from fossil fuels towards new and renewable energy sources. The primary challenge, Lahadalia noted, lies in developing more efficient hydrogen technologies.

The Global Hydrogen Ecosystem Summit and Exhibition serves as a platform for government, industry, academia, and international partners to collaborate on advancing Indonesia's hydrogen sector. The event underscores Indonesia's commitment to integrating hydrogen into transportation, industry, logistics, and port operations, with an initial focus on the transportation sector to reduce emissions.

The challenge becomes how to gain more efficient hydrogen technology.

— Bahlil LahadaliaMinister Lahadalia identified a key hurdle in the development of hydrogen energy.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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