ACWA Power, Saudi Arabia 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 of 28th United Nations Climate Change Conference (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.

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.

“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.

President Director of Pupuk Indonesia Rahmad Pribadi said: “This collaboration is an extraordinary collaboration. 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.”

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.