Saudi Arabia’s leading private sector power and water company, ACWA Power (ACWA), has pledged to develop Indonesia’s largest green hydrogen facility in collaboration with the state-owned electricity provider PT Perusahaan Listrik Negara (PLN) and fertiliser producer PT Pupuk Indonesia. This significant agreement, announced at COP28, marks a milestone for the Garuda Hidrogen Hijau (GH2) project, set to harness 600MW of solar and wind power to produce an annual output of 150,000 tonnes of green ammonia.
The engineering, procurement, and construction (EPC) bidding process for this ambitious project, estimated to cost over $1 billion, is scheduled to commence in the first quarter of 2024. The financial close is anticipated by the end of 2025.
ACWA Power’s CEO, Marco Arcelli, expressed enthusiasm about deepening their relationships with Indonesia through this pioneering green hydrogen venture. He stated, “As we expand our footprint in Indonesia, we remain committed to supporting sustainable progress, for a greener future for all.”
This agreement adds to ACWA’s growing hydrogen portfolio, which includes the construction of the NEOM Green Hydrogen Project in Saudi Arabia, aiming for an annual production capacity of 1.2 million tonnes. ACWA also recently initiated a second green hydrogen project in Uzbekistan, targeting an annual production of 3,000 tonnes.
Darmawan Prasodjo, President Director of PLN, emphasized the importance of green hydrogen in accelerating the energy transition, stating, “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.”
The Indonesian green hydrogen market is positioned for substantial growth, driven by the country’s commitment to reducing carbon emissions and dependence on fossil fuels. However, challenges persist, requiring investment in renewable energy infrastructure and the adoption of advanced electrolysis technology and storage solutions to propel the sector’s development.
