Renewable energy project developer Aslan Energy Capital has launched a front-end engineering and design tender to build a renewable hydrogen project in Batam, Indonesia, with 600 MW of installed electrolysis capacity powered by a 1,200-MWh solar plant and plans to take a final investment decision in 2026, Chief Executive Officer Muthu Chezhian said.

The developer expects to announce the FEED contractor selection for the Hidrogen Energi Mitra Utama, or HEMU, project by August 2025, according to Chezhian.

Located in the Riau Islands, this project development features utility-scale solar farms with alkaline electrolyzers and will utilize battery storage at night to provide consistent power.

Chezhian said Aslan Energy aims to begin supplying Singapore with about 110,000 mt/year of gaseous hydrogen via pipeline from 2028 and has signed a heads of agreement with a prospective Singapore-based customer, without disclosing the customer's name.

The production cost at the HEMU project is anticipated to be competitive, benefiting from the advantage of proximity to Singapore.

Buying indications for low-carbon hydrogen in Singapore were at $3/kg on May 27.

"Many hydrogen projects are not commercially viable, with storage and transportation costs forming a significant barrier to adoption. However, our HEMU project is located a mere 40 km away from Singapore, easing transportation cost concerns," Chezhian said.

In addition to hydrogen, Aslan Energy Capital is exploring ammonia production on the west coast of North America, which could provide supplies for ammonia bunkering in Southeast Asia.

In July 2024, the developer signed a memorandum of understanding to acquire 35,000 hectares of land in Sonora, Mexico, for a renewable energy-based green hydrogen and green ammonia production facility -- the Aslan Net-zero Energy Mexico Project.