KUALA LUMPUR (Nov 11): Singapore-based LNG Alliance's green arm Carbon Governance plans to build a green hydrogen plant in Indonesia, expecting an "exponential" increase in demand from neighbouring countries in the next few decades.

Global energy and commodity market business intelligence provider Argus Media on Friday (Nov 11) said construction of the 30 tonnes per day solar-powered plant in Bintan is expected to start in the second half of 2024 and finish in 2026.

It said the firm plans to increase the plant's capacity from 30 tonnes per day to 60 tonnes per day within two years of achieving first production, and to 115 tonnes per day in the next five years.

Argus quoted LNG Alliance managing director Muthu Chezhian as saying that the plant will use high-efficiency bi-facial solar panels which are expected to produce sufficient and reliable power to run electrolysers.

He said the firm is leaning towards using proton exchange membrane electrolysers for the plant and will determine a suitable technology provider in the second quarter of 2023.

Argus said Carbon Governance will export the green hydrogen to neighbouring countries, where demand is expected to increase exponentially in the next few decades.

The project will focus on Singapore as its primary market.

Muthu said Singapore provides immediate market opportunities for green hydrogen within Southeast Asia because of its commitment and effort towards its net zero emission goal.