HDF Energy Indonesia has formalized cooperation with DFC, the US International Development Finance Agency, to develop Renewstable multi-megawatt power plants in Indonesia.
This cooperation is one of 13 initiatives that are part of a strategic partnership between the United States and Indonesia to tackle the climate crisis and promote access to affordable food and electricity. This partnership between DFC and HDF Energy was announced by US President Joe Biden after he met with Indonesian President Joko Widodo on November 14, 2022, during the G20 Summit.
Developed by HDF Energy, Renewstable multi-megawatt power plants produce entirely non-intermittent, renewable, and dispatchable electricity 24/7. They combine an intermittent renewable source and mass, long-term storage of energy through a hydrogen chain. It is the green alternative to a conventional diesel fuel power plant as they only use solar energy and water to produce stable electricity, thus avoiding greenhouse gas emissions and noise pollution.
DFC has committed to providing technical assistance grant funding to HDF Energy to support the development of Renewstable projects in Indonesia. DFC will fund technical and feasibility studies for HDF Energy’s all 22 Renewstable projects in Indonesia. For this pipeline of projects, with an investment amount of 1.5 billion dollars, HDF Energy also receives support from development institutions.
The first and most advanced project is located on the island of Sumba. It is a 10 MW Renewstable power plant, a cornerstone of the Indonesian government’s sustainable development program Sumba Iconic Island.
Last month, HDF Energy had already signed a memorandum of understanding with PT Nusantara Power, a subsidiary of PT PLN Persero (the Indonesian state-owned electric utility), in order to create synergies on efforts, resources, and expertise necessary for the study and development of green hydrogen projects. These include HDF Energy’s 22 Renewstable projects for which DFC will provide technical assistance. In addition, the two companies will also consider the implementation of hydrogen generation plants to reduce the use of fossil fuels in existing power plants.