ACWA Power, PLN to Develop Green Hydrogen Facility in Indonesia

ACWA Power is partnering with PT Perusahaan Listrik Negara (PLN) and PT Pupuk Indonesia to establish a large-scale green hydrogen facility in Indonesia. The agreement was signed by ACWA Power CEO Marco Arcelli, PLN CEO Darmawan Prasodjo, and Pupuk Indonesia CEO Rahmad Pribadi and it was announced at the United Nations’ COP28 climate conference in Dubai.

The Garuda Hidrogen Hijau (GH2) project is expected to begin commercial operations in 2026 and will be powered by 600 MW of wind and solar to produce 150,000 tons of green ammonia per year. The project has an estimated cost of upwards of $1 billion.

"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," said Darmawan Prasodjo, President Director, PT Perusahaan Listrik Negara. “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.”

A bidding process for the engineering, procurement, and construction (EPC) contract for the Garuda Hidrogen Hijau project is expected to start in the first quarter of 2024, with the financial close scheduled for the end of 2025.

This project represents an expansion of ACWA Power’s green hydrogen portfolio, which already contains the 1.2 MTPA NEOM green hydrogen project in Saudi Arabia and a secondary project in Uzbekistan. The NEOM project is planned for completion in late 2026 and ACWA Power broke ground on the Uzbekistan project in November of 2023.

“We are honored to deepen our relationships with the government and government entities through this new green hydrogen project,” said 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.”