PT Pupuk Indonesia (Persero), in partnership with PT PLN (Persero) and ACWA Power Company, is making significant strides in the development of clean energy in Indonesia.
The companies have entered into a joint development study agreement to explore and develop integrated green hydrogen and green ammonia projects. This collaboration aligns with the government’s focus on clean energy development and energy security.
The Joint Development Study Agreement for the Development of Integrated Green Hydrogen and Green Ammonia was witnessed by Deputy Minister of BUMN I, Pahala Mansury, and signed by Bakir Pasaman (Main Director of Pupuk Indonesia), Darmawan Prasodjo (Main Director of PLN), and Marco Arcelli (CEO of ACWA Power Company). The agreement signifies the continuation of clean energy initiatives, following the successful implementation of green energy development in the green industrial cluster in Aceh.
Deputy Minister Pahala Mansury expressed the Ministry of BUMN’s support for the collaboration in the development of green hydrogen and green ammonia. He stated that this cooperation is integral to the development of clean energy in East Java, particularly in the Gresik Petrochemical Area.
Bakir Pasaman, Main Director of Pupuk Indonesia, emphasized the significance of this collaboration, highlighting its alignment with the energy security program and the 2024 Golden Indonesia Vision. He expressed Pupuk Indonesia’s enthusiasm for the development of green hydrogen and green ammonia, as these clean energy solutions are in line with the company’s commitment to clean energy and the government’s vision.
According to the joint study agreement, the green hydrogen and green ammonia facilities will be established in the Gresik Petrochemical Industrial Area in East Java. The area benefits from potential clean energy sources, such as solar power plants (PLTS) and wind power plants (PLTB), with a maximum capacity of 200 MW. These power sources will produce green hydrogen, which will then be converted into green ammonia at Petrokimia Gresik.
Furthermore, the three parties involved are collaborating to develop business strategies and assess the potential for forming a joint venture to establish a green hydrogen plant and a green ammonia plant. This partnership aims to benefit all stakeholders, including investors and the domestic industry.
Through this collaboration, Pupuk Indonesia, PLN, and ACWA Power Company will evaluate the conversion of green hydrogen into green ammonia using the existing Gresik Ammonia facility. Additionally, this initiative presents opportunities for long-term partnerships with green ammonia off-takers.
Green hydrogen, also known as hydrogen obtained from clean sources without carbon emissions, holds significant promise for a sustainable future. ACWA Power Company is renowned for its development of the NEOM green hydrogen project in Saudi Arabia, one of the world’s largest green hydrogen projects with a requirement of 40 GW of green energy. ACWA Power has also contributed to notable clean energy projects such as the Noor Energy Project, the largest concentrated solar power project in the world, and the Shuaa Solar Power Energy Project.
Given that PT Pupuk Indonesia is one of the world’s largest ammonia producers, the company is strategically positioned to support clean energy initiatives through the development of green ammonia in Indonesia. Green ammonia has the potential to become a vital source of clean energy and serve as a hydrogen carrier or medium for transporting hydrogen in the future.
The collaboration between PT Pupuk Indonesia, PT PLN, and ACWA Power marks a significant milestone in the development of clean energy technologies in Indonesia. Through the advancement of green hydrogen and green ammonia projects, these companies are contributing to the transition towards a more sustainable and environmentally friendly energy landscape in the country.
