Saudi-listed ACWA Power Company (ACWA Power), the world’s largest private water desalination company and a first mover into green hydrogen has announced that it is is set to develop in 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.
The announcement was made on the sidelines of the 28th United Nations Climate Change Conference (COP28) underway in Dubai, United Arab Emirates (UAE).
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 tonnes of green ammonia per year.
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, said Darmawan Prasodjo, President Director at PLN.
The cost of the project is estimated to be upwards of US$1 billion.
This collaboration is extraordinary. 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, commented Rahmad Pribadi, President Director of Pupuk Indonesia.
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.
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, said Marco Arcelli, CEO of ACWA Power.
ACWA Power is expanding its green hydrogen portfolio; work is well underway at the 1.2 million tonne-per-year NEOM Green Hydrogen Project in Saudi Arabia and is planned for completion in late 2026, and the company broke ground on a second project in Uzbekistan, in November 2023.
