As 2026 approaches, hydrogen is poised to make its mark on the renewable energy landscape, a field long dominated by solar and wind power. Despite being the most abundant element in the universe and a key building block of life, hydrogen has lagged behind its renewable cousins—until now. Global energy player Aslan Energy Capital has announced plans for a Final Investment Decision (FID) in 2026 for a large-scale hydrogen project in Indonesia, aiming to position the country as a regional leader in the sector.
Hidrogen Energi Mitra Utama: Indonesia’s Leap into Hydrogen
The Hidrogen Energi Mitra Utama (HEMU) project highlights Indonesia’s growing commitment to renewable energy and aligns with global emissions reduction goals. The initiative could also offer attractive returns for investors exploring Asia’s renewable energy market. With operations across the globe, Aslan Energy Capital is leveraging its experience to expand into Indonesia’s hydrogen sector.
The HEMU project will feature 600 MW of electrolysis capacity, powered by a 1,200-MWh solar plant. The company plans to launch a front-end engineering and design tender for the facility near Batam, Indonesia, with an FID targeted for 2026.
Overcoming Challenges in Hydrogen Adoption
Hydrogen has historically struggled to scale, largely due to high operational costs and limited investment. However, Aslan Energy’s planned FID signals a turning point for the sector.
The project will integrate cutting-edge technology, including utility-scale solar farms, alkaline electrolyzers, and energy storage systems to allow nighttime operation. Its location near Singapore, a nation also boosting renewable capacity, further enhances logistical efficiency.
“Many hydrogen projects are not commercially viable, with storage and transportation costs forming a significant barrier to adoption. However, our HEMU project is located just 40 km from Singapore, easing transportation cost concerns,” said Aslan Energy CEO Muthu Chezhian.
A Bright Future for Hydrogen in Asia
Strategic investments like Aslan Energy’s FID could help revive the hydrogen sector after years of stagnation. With a supportive investment environment and regional demand for low-carbon energy, Indonesia has the potential to become a leading hydrogen supplier in Asia. The European Union’s plans to back hydrogen deployment in the Baltic Sea indicate that global interest in the sector is growing.
Hydrogen may have faced hurdles, but with initiatives like HEMU, the element is on track for a bright future in renewable energy.
