Pupuk Indonesia, PLN subsidiaries, and ACWA Power have strengthened their collaboration to further the green hydrogen ecosystem. They signed a Head of Key Terms agreement at Jakarta’s Indonesia International Sustainability Forum.
The agreement focuses on procuring green hydrogen for green ammonia production, a crucial step in the industrial decarbonization efforts aligned with Indonesia’s net-zero emissions goal by 2060.
Renewable Energy Efforts
ACWA Power, a Saudi company with expertise in global clean power and green hydrogen projects, joined forces with Pupuk Indonesia and PLN for this endeavor. Named the Garuda H2 project, this initiative aims to produce 15,000 tons of green hydrogen annually, marking a significant contribution to an environmentally friendly industrial ecosystem.
Ammonia from Water
Rahmad Pribadi, President Director of Pupuk Indonesia, emphasized the importance of this cooperation. Instead of using natural gas, the partnership aims to produce ammonia using water as a raw material powered by renewable energy. This method greatly reduces the carbon intensity of the production process.
A 25-Year Commitment
The collaboration extends to forming a joint venture named Project Company, responsible for building and managing a green hydrogen plant. The plant will utilize water electrolysis powered by renewable energy. The produced green hydrogen will be supplied to Pupuk Indonesia and other partners under a 25-year contract.
Green Energy Transition
This project supports the Ministry of State-Owned Enterprises’ Green Economy Pioneer 10 Years Roadmap, which promotes synergy to advance Indonesia’s green energy shift. Green hydrogen will be a vital raw material for creating green ammonia, essential for producing more eco-friendly fertilizers. Pupuk Indonesia is taking proactive steps to reduce carbon emissions in line with national and global environmental goals.
