Challenge
As an island nation, Indonesia is highly vulnerable to the effects of climate change. Its capital city Jakarta has been found to be one of the global cities facing the highest levels of risk, and about 42 million of people in Indonesia live in low-lying areas.
The majority of Indonesia’s energy today comes from fossil fuels, with coal, oil, and gas contributing to over 90 percent of the country’s energy. Many parts of the country depend on isolated grids powered by diesel fuel. The dependency on fossil fuel-fired power generation is expected to reach 812 metric tons of carbon dioxide equivalent by 2030.
Solution and Impact
DFC has committed to providing technical assistance funding to Hydrogène De France (HDF) to support the development of a portfolio of green hydrogen projects in Indonesia that would create economic opportunities for surrounding communities, reduce emissions, and increase energy security.
HDF, a pioneer in the hydrogen field, has developed its “Renewstable” power plant that produces electricity utilizing renewable energy combined with storage. DFC’s technical assistance will go toward environmental and social impact assessments, technical studies, and feasibility studies for HDF’s more advanced 10 MW Renewstable project in Sumba and a pipeline of 22 projects in Eastern Indonesia at earlier stages of development.