Posted on 08 Dec 2023
Saudi Arabia’s ACWA Power plans to develop a $1 billion green hydrogen facility in Indonesia in partnership with Indonesia’s state-owned electricity provider PT Perusahaan Lisrik Negra (PLN) and fertiliser producer PT Pupuk Indonesia.
The so-called Garuda Hidrogen Hijau (GH2) project, touted to be the largest green hydrogen project in the country, is expected to produce 150,000 tonnes/year of green ammonia. Powered by 600 megawatts of solar and wind energy, the project is anticipated to start operations in 2026, Kallanish learns from ACWA Power.
“Green hydrogen is one of the answers to the energy transition,” says PLN president director Darmawan Prasodjo. “Therefore, the development of green hydrogen is our focus in efforts to accelerate the energy transition.”
After signing the agreement during COP28 in Dubai, the companies said the bidding for engineering procurement and construction (EPC) for the project is anticipated to commence in Q1 2024, with financial close planned for late 2025.
The announcement comes on the heels of an integrated green hydrogen and ammonia project the three companies announced in Indonesia in September. Under a joint development study agreement (JDSA) signed by the partners, the project is expected to produce over 30,000 t/y of hydrogen.
“We are honoured to deepen our relationships with the government and government entities of this vibrant, ambitious nation through this new green hydrogen project,” notes Marco Arcelli, CEO of ACWA Power. “As we expand our footprint in Indonesia, we remain committed to supporting sustainable progress, for a greener future for all.”
ACWA, the world’s largest private water desalination company, is developing a slew of green hydrogen projects globally, with work underway for the 1.2 million t/y NEOM green hydrogen project in Saudi Arabia. The company recently began construction of Uzbekistan’s first green hydrogen project, with Phase 1 set to produce 3,000 t/y of green hydrogen.
PLN, meanwhile, is also exploring green hydrogen production opportunities with UAE-based Masdar. The parties said earlier this week Indonesia is in a “prime position” to become a green hydrogen production hub thanks to its abundant solar resources.
Source:Kallanish
