06
December
2023
|
09:16
Europe/Amsterdam

ACWA Power signs deal to develop the largest green hydrogen project in Indonesia

Summary

·      Project marks ACWA Power’s global green hydrogen expansion 

·      Facility to be powered by 600MW renewable energy plant and will produce 150,000 tonnes of green ammonia annually

·      Deal was signed on the sidelines of COP28 climate conference

Dubai, United Arab Emirates06 December 2023: Saudi-listed ACWA Power, the world’s largest private water desalination company, leader in energy transition and first mover into green hydrogen, is set to develop in the largest green hydrogen facility in Indonesia with PT Perusahaan Listrik Negara (PLN), Indonesia’s state-owned electricity provider and PT Pupuk Indonesia, a state-owned fertiliser and chemical producer. 

The announcement was made on the sidelines of 28th United Nations Climate Change Conference (COP28) underway in Dubai. ACWA Power CEO Marco Arcelli signed the agreement with PLN’s CEO Darmawan Prasodjo and Rahmad Pribadi - CEO of Pupuk Indonesia Holding Company.

Marco Arcelli, Chief Executive Officer of ACWA Power

We are honoured to deepen our relationships with the government and government entities of this vibrant, ambitious nation through this new green hydrogen project. As we expand our footprint in Indonesia, we remain committed to supporting sustainable progress, for a greener future for all.

Marco Arcelli, Chief Executive Officer of ACWA Power

The Garuda Hidrogen Hijau (GH2) Project, which is expected to start commercial operations in 2026, will run on 600MW of solar and wind power, and will produce 150,000 tonnes of green ammonia per year. The cost of the project is estimated to be upwards of $1 billion. 

The bidding process for engineering procurement and construction (EPC) for the Garuda Hidrogen Hijau project is expected to start in the first quarter of 2024, with financial close planned for the end of 2025. 

ACWA Power is expanding its green hydrogen portfolio; work is well underway at the 1.2 million tonne-per-year NEOM Green Hydrogen Project in Saudi Arabia and planned for completion in late 2026, and the company broke ground on a second project in Uzbekistan, in November 2023. 

"Green hydrogen is one of the answers to the energy transition. Therefore, the development of green hydrogen is our focus in efforts to accelerate the energy transition," said PLN President Director Darmawan Prasodjo.

We see a strong commitment from the government, PLN, Pupuk Indonesia and ACWA Power, therefore we are ready to support this joint development effort of green hydrogen and green ammonia to achieve common goals

Mr. Darmawan Prasodjo, President Director and CEO of PLN

President Director of Pupuk Indonesia Rahmad Pribadi said: "This collaboration is an extraordinary collaboration. This effort is not only for the benefit of a better environmental future but also to encourage better economic growth in Indonesia in the future.”

The company is also growing its presence in Indonesia after it was awarded the contracts to develop two floating offshore solar photovoltaic (PV) plants in October 2022.