UPDATE 1-Singapore, Indonesia to build renewable energy industry in Batam

(Releads, adds more details)

By Xinghui Kok and Matthew Chye

SINGAPORE, March 16 (Reuters) -

Singapore and Indonesia plan to develop a renewable energy industry in Batam that will produce equipment and build power plants to supply electricity into Southeast Asia's biggest economy and for export.

Singapore and Indonesia will facilitate the development of solar farms and battery energy storage system (BESS) to supply renewable energy, and when viable, hydrogen and ammonia, Indonesia's coordinating ministry for maritime affairs and investments, and Singapore's trade and industry ministry said in a joint statement.

The so-called Green Corridor project in the largest city in the province of Riau Islands is estimated to attract $50 billion of foreign direct investment and create "tens of thousands of jobs", Sustainable Energy Association of Singapore said in a statement.

SEAS members and multiple partners signed on Thursday a memorandum of understanding (MOU) to work on the project, one of nine such agreements signed by businesses in Singapore and Indonesia at the bilateral meeting.

Singapore Prime Minister Lee Hsien Loong and visiting Indonesian President Joko Widodo witnessed the signing of six pacts between their governments, including one on developing renewable energy.

Both countries will also work together to facilitate commercial arrangements and the development of frameworks and transmission infrastructure to allow cross-border electricity trading between Indonesia and Singapore, which generate capital inflows into Indonesia, the ministries said.

"This Green Corridor project is a win-win between Singapore and Indonesia and will open up many more renewable energy projects, where both countries will benefit tremendously," said Edwin Khew, chairman of the SEAS.

Members of SEAS and multiple partners working to develop the Green Corridor project include carbon exchanges, renewable power producers and infrastructure companies such as EDPR Sunseap, Vanda RE, Keppel, Huawei, as well as battery makers VFlow Tech Batteries and Narada Batteries. (Reporting by Xinghui Kok and Matthew Chye Editing by Bernadette Baum, Martin Petty)