Saudi Arabia-listed ACWA Power will develop a $1 billion (AED 3.67 billion) green hydrogen project in Indonesia following a deal signed on the sidelines of climate summit COP28 in Dubai.
The facility will be powered by a 600MW renewable energy plant to produce 150,000 tonnes of green ammonia per year.
ACWA will develop the project with PT Perusahaan Listrik Negara (PLN), Indonesia’s state-owned electricity provider and PT Pupuk Indonesia, a state-owned fertiliser and chemical producer.
The Garuda Hidrogen Hijau (GH2) Project, which is expected to start commercial operations in 2026, will run on 600MW of solar and wind power, an ACWA statement said, and will produce 150,000 tonnes of green ammonia per year, with the cost of the project estimated at upwards of $1 billion.
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 already expanding its green hydrogen portfolio, working on the 1.2 million tonne-per-year NEOM Green Hydrogen Project in Saudi Arabia, and broke ground on a second project in Uzbekistan, in November 2023.
The company was also awarded the contracts to develop two floating offshore solar photovoltaic (PV) plants in Indonesia in October 2022.
(Reporting by Imogen Lillywhite; editing by Daniel Luiz)