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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.

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