Sembcorp Industries announced on Wednesday it had signed a joint development framework agreement with PLN Energi Primer Indonesia and Transportasi Gas Indonesia to explore the feasibility of a hydrogen pipeline connecting Sumatra, Indonesia’s Riau Islands, and Singapore.

The agreement, signed at the sidelines of the COP29 climate summit, aims to establish a potential route for transporting hydrogen between the two countries. 

Sembcorp’s announcements follow the previous announcement of a partnership with PLN Energi Primer Indonesia to develop a large-scale green hydrogen facility in Southeast Asia.

Although the company’s shares closed at 1% lower at S$5.03 on Wednesday, the company clarified that the agreement is not expected to significantly impact its financial performance for the current fiscal year.

Hydrogen pipelines are slowly but surely gaining traction across Europe and other regions as world economies work towards achieving emission goals, with hydrogen seen as a safer intermediate alternative for transitioning to an emission-neutral future.