Indonesia Projected to Always Have a Hydrogen Surplus Until 2060

According to the Ministry of Energy and Mineral Resources (ESDM), hydrogen demand in Indonesia is projected to increase from 2025 to 2060.

This projection includes total demand from various sectors, including industry, transportation, power generation, and gas networks, as well as all hydrogen production methods: electrolysis, biogas, and gasification.

According to the ESDM Ministry, hydrogen demand is projected to reach 39,460 tons in 2025.

By 2040, demand is projected to rise significantly to 1.92 million tons. The ESDM Ministry stated that this surge is due to the increased need for hydrogen to produce ammonia as fuel for ammonia-fueled power plants.

A surge in demand is also expected between 2050 and 2055, triggered by the operation of hydrogen-fueled power plants with a capacity of 4 gigawatts (GW) in 2051, utilizing 100% hydrogen fuel, then increasing to 24.0 GW by 2055, and 25.3 GW by 2060.

However, the ESDM Ministry projects a gap between hydrogen production and demand. This is because, from 2025 to 2060, a hydrogen surplus is consistently projected in the country, as shown in the table above.

“The gap between hydrogen production and demand starts at 160.1 thousand tons in 2025 and is projected to reach 5.7 million tons by 2060,” said the ESDM Ministry in its *National Hydrogen and Ammonia Roadmap* report.

According to the ESDM Ministry, this condition highlights the need for efforts to increase hydrogen utilization across various domestic sectors.

However, this gap also presents strategic opportunities for Indonesia to meet global market demand, with key targets including Japan, South Korea, China, Singapore, and European countries.

“This demonstrates Indonesia's significant potential to contribute to the global hydrogen market while continuing to promote broader domestic utilization,” stated the ESDM Ministry.

(Read also: China, the World's Largest Hydrogen Consumer in 2024)