ACWA Power is set to develop 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 fertilizer and chemical producer.
Saudi Arabia-listed ACWA Power is the world’s largest private water desalination company, leader in energy transition, and first mover into green hydrogen.
The announcement was made on the sidelines of the 28th United Nations Climate Change Conference (COP28) in Dubai.
Mr. Marco Arcelli, CEO of ACWA Power, said that, “We are honored 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.”
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 tons 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.
Mr. Darmawan Prasodjo, PT PLN President Director, noted that, “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. 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.”
President Director of Pupuk Indonesia Mr. Rahmad Pribadi said that “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.”