Keppel Infrastructure unit in tie-up to explore green projects in Indonesia

KEPPEL New Energy, a subsidiary of Keppel Corporation’s infrastructure arm, will be collaborating with Pertamina Power Indonesia and Chevron New Energies International to explore the development of green hydrogen and green ammonia projects using renewable energy in Indonesia.

The companies will assess the feasibility of developing a green hydrogen facility, powered by geothermal energy, to produce at least 40,000 tonnes of hydrogen per year.

Green hydrogen is touted as a potential game changer in the race for net-zero emissions by cutting fossil fuel dependence. While the alternative fuel is typically generated through electrolysis from water, green ammonia can also be used as a carrier to provide green hydrogen.

The project is expected to contribute to Indonesia’s goal to achieve net-zero emissions by 2060.

With about 40 per cent of the world’s geothermal resources, Indonesia has “vast resources and enormous potential for renewable and low carbon energy”, said Keppel Infrastructure chief executive officer Cindy Lim.

The partnership was confirmed on Friday (Nov 11) through a joint study agreement signed by the three companies at the Business 20 Investment Forum in Bali.

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This is Keppel Infrastructure’s second such partnership in as many months, following the announcement of a similar collaboration with Indian renewable energy company GreenKo in October.

Keppel Corporation does not expect the partnership to have any material impact on its earnings per share and net tangible assets for the current financial year.

As at 1.02 pm on Friday, shares of Keppel Corporation : BN4 0% were trading higher by 1.8 per cent or S$0.13 at S$7.23.