Korean companies Samsung and Hyundai are planning to develop a $1.2 billion project to produce green hydrogen in North Sumatra, Indonesia.

The Korean companies in collaboration with the Global Green Growth Institute (GGGI) will develop the large-scale green hydrogen/ ammonia production project utilizing green geothermal power from the Sarulla geothermal power plant in the Sarulla Block in North Sumatra, Indonesia. 

The project plans to use electricity from the geothermal operations in the Sarulla Block to produce green hydrogen. The goal is to supply the green hydrogen as green fuel for steel and cement making factories in the Sei Mangkei Industrial Zone around 250 km to the North of the Sarulla plant.

Samsung Engineering will work on the design and validity study, while Hyundai Glovis will work on green ammonia shipping, and Korea Gas corporation will launch a green ammonia business with supply from Indonesia.

An early business feasibility study has been conducted since November 2021 and a planned completion in the second half of 2022.