ACWA Power & Indonesia’s PERTAMINA to develop Tuban GRR&P project

By Arya M Nair, Official Reporter
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ACWA Power to develop Tuban refinery
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ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, and PERTAMINA New & Renewable Energy (PERTAMINA NRE), have signed a joint development agreement (JDA) to develop the core utility supply for the Tuban Grass Root Refinery and Petrochemical (GRR&P) Project.

The agreement was signed by Mr. Dannif Danusaputro, CEO of PNRE and Mr. Paddy Padmanathan, Vice Chairman and CEO of ACWA Power, at the B20 Summit. The ceremony was witnessed by Indonesian Minister of Energy and Mineral Resources Mr. Arifin Tasrif, Indonesian Chairman of the Chamber of Commerce and Industry Mr. Arsjad Rasjid, Chair of B20 Indonesia Ms. Shinta Kamdani, and CEO & President Director of Pertamina Ms. Nicke Widyawati.

A refinery capable of producing aromatics and ethylene, the Tuban facility is located in Java, eastern Indonesia. The scope of the JDA comprises the development of a 575 MW power generation facility, a steam generation component with a capacity of 3,288 tons per hour, and a water desalination plant with a total capacity of 363,480 m3/day.

Paddy Padmanathan_ACWA to develop Tuban refinery
Paddy Padmanathan President & CEO
ACWA Power

“With climate change implementation strategies at the top of the global consciousness, an integrated approach that can enable decarbonization in a responsible and reliable manner is key to mitigating the impact of carbon-intensive industries. As a company that this driving the transition, we are proud and privileged to be collaborating with such a visionary company as PERTAMINA NRE, leveraging our extensive expertise in delivering renewable energy and desalinated water at scale, and now green hydrogen as well, to deliver successful outcomes.”

Developing low-carbon solutions is PERTAMINA NRE’s core business focus, along with renewable energy development, and building future businesses. As a subsidiary of the state-owned PERTAMINA group which has committed to a net zero emissions target by 2060, PERTAMINA NRE is at the front of building green businesses and developing decarbonization initiatives in the Republic of Indonesia.

Mr. Danusaputro, said that “This is a strategic collaboration where we will take part in supporting the Tuban GRR&P project that will play a key role in building national energy security. It is very exciting that we are going to support the Tuban GRR&P project by providing low-carbon solutions. Having a reputable strategic partner is very crucial in terms of technology transfer and risk sharing. We believe this collaboration will create significant value.”

The Tuban GRR&P has been identified by the Indonesian government as a project of national strategic importance that will enable national energy security and advance the domestic petrochemical industry.

ACWA Power’s power and water desalination plant for the Tuban GRR&P is expected to be operational by Q1 2027.

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