Skip to content Skip to Search
Skip navigation

Acwa Power to develop $1bn green hydrogen project in Indonesia

By Pramod Kumar
Executives of Acwa Power, PT Perusahaan Listrik Negara and PT Pupuk Indonesia at a signing ceremony held on the sidelines of Cop28 in Dubai Acwa Power
Executives of Acwa Power, PT Perusahaan Listrik Negara and PT Pupuk Indonesia at a signing ceremony held on the sidelines of Cop28 in Dubai

Saudi-listed Acwa Power will develop a $1 billion green hydrogen facility – the largest in Indonesia – that will start commercial production in 2026.

The project will be codeveloped with PT Perusahaan Listrik Negara (PLN), Indonesia’s state-owned electricity provider and PT Pupuk Indonesia, a state-owned fertiliser and chemical producer. 

The agreement was signed on the sidelines of the Cop28 climate summit in Dubai.

The Garuda Hidrogen Hijau project will run on 600 MW of solar and wind power and will produce 150,000 tonnes of green ammonia per year, Acwa Power said in a statement.

The bidding process for engineering procurement and construction 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 with work well underway at the 1.2 million tonne-per-year Neom Green Hydrogen Project in Saudi Arabia. The project is planned for completion in late 2026.

The company broke ground on a second project in Uzbekistan last month. 

“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 PLN president director Darmawan Prasodjo. 

The Saudi renewables company won contracts to develop two floating offshore solar photovoltaic plants last October. 

The hydrogen rainbow

  • Green hydrogen is produced on a carbon-neutral basis through water electrolysis. 
  • Turquoise hydrogen is created when natural gas is broken down into hydrogen and solid carbon with the help of methane pyrolysis.
  • Blue hydrogen is generated from the steam reduction of natural gas. 
  • Grey hydrogen is obtained by steam reforming fossil fuels such as natural gas or coal. 
  • Sometimes other colours are ascribed to hydrogen, based on how it is produced. For red, pink and violet hydrogen, the electrolysers are driven by nuclear power. 
  • Yellow hydrogen is hydrogen produced from a mixture of renewable energies and fossil fuels. 
  • White hydrogen is a waste product of other chemical processes, while the use of coal as a fuel produces brown hydrogen.

Latest articles

A Geely Galaxy E8 electric vehicle at Auto China 2024. Geely is one of the most popular Chinese car brands in the Gulf

Chinese carmakers ‘taking Gulf by storm’

Chinese carmakers now claim a sizeable chunk of new car sales in the Gulf and it is likely they will increase their market share further by wooing regional consumers through their vehicles’ innovative designs and perceived value for money. That is the prediction of Amir Khurshid, CEO of Saudi Arabia’s ThinkDirect Automotive Consulting and an […]

UAE’s RedBird IMI acquires UK TV producer for $1.5bn

RedBird IMI, A US investment management company partly owned by Abu Dhabi’s International Media Investments, has acquired All3Media, the UK’s largest independent TV production company behind hits such as Fleabag, The Traitors and Gogglebox. The for £1.15 billion ($1.5 billion) deal is the largest for RedBird IMI to date, the company said in a statement. […]

PIF's Starbucks shareholdings were cut almost by half from 6.3 million shares to 3.8 million

PIF slashes Starbucks stake as it cuts US stocks by $15bn

Saudi Arabia’s Public Investment Fund (PIF) has slashed its US equity holdings by 42 percent to $20.6 billion, including its stake in Starbucks, the global coffee chain that has suffered calls for a boycott as a result of the Gaza conflict. The latest US government data highlights funding challenges facing the Saudi giga-projects.  The filing […]

Tunisia olives

Soaring olive oil exports help Tunisia balance books

Tunisia’s soaring olive oil exports have almost doubled to close to $1 billion in just five months, helping it claw back its current account deficit.   However the increased revenues merely “paint over the cracks” and the country is still probably heading towards a sovereign default, according to an economic expert. Tunisia’s current account deficit narrowed […]