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Saudi’s ACWA power develops green hydrogen in Indonesia

Green hydrogen

green hydrogen for Indonesia

Saudi-listed ACWA Power, the world’s largest private water desalination company, leader in energy transition and first mover into green hydrogen, 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 fertiliser and chemical producer.

The announcement was made on the sidelines COP28 underway in Dubai. ACWA Power CEO Marco Arcelli signed the agreement with PLN’s CEO Darmawan Prasodjo and Rahmad Pribadi – CEO of Pupuk Indonesia Holding Company.

Marco Arcelli, Chief Executive Officer of ACWA Power

Marco Arcelli, Chief Executive Officer of ACWA Power

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

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.

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 planned for completion in late 2026, and the company broke ground on a second project in Uzbekistan, in November 2023.

The company 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.

ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants with a presence in 12 countries across the Middle East, Africa, Central and South-East Asia. ACWA Power’s portfolio of projects in operation and development has an investment value in excess of USD 74.8 billion, and a capacity of more than 50 GW of power and 7.6 million m3/day of desalinated water.

Its energy portfolio includes efficient combined cycle power plants, solar (Photovoltaic (PV) and Concentrated Solar Power (CSP)), wind, desalination plants, and green hydrogen projects.

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