New green hydrogen project to expand ACWA Power’s portfolio in Indonesia

December 6, 2023, by Aida Čučuk

ACWA Power, a Saudi developer, investor and operator of power generation, water desalination and green hydrogen plants worldwide, PT Perusahaan Listrik Negara (PLN), Indonesia’s state-owned electricity provider, and PT Pupuk Indonesia, a state-owned fertilizer and chemical producer, are set to develop what is expected to be the largest green hydrogen facility in Indonesia.

The announcement was made on the sidelines of the 28th United Nations Climate Change Conference (COP28) underway in Dubai, UAE.

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

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

Marco Arcelli, CEO of ACWA Power, stated: “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.”

PLN President Director Darmawan Prasodjo noted: “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 Rahmad Pribadi remarked: “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.”

To note, ACWA Power is expanding its green hydrogen portfolio. The company said the work is well underway at the 1.2 million ton-per-year NEOM Green Hydrogen Project in Saudi Arabia and is planned for completion in late 2026, adding that the company also broke ground on a project in Uzbekistan in November 2023.

ACWA Power 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.

The projects, with a combined capacity of 100 MWac and $105 million in investment value, are expected to help Indonesia achieve its renewable energy target of 23% by 2025, under the country’s National General Energy Plan.