Indonesia’s state-owned electricity company PT PLN has entered into a collaboration with ACWA Power and PT Pupuk Indonesia this month to develop green hydrogen for ammonia manufacturing in Gresik, East Java.
The government is committed to building green sector clusters, and hopes this collaboration will be a concrete step toward the development of renewable energy in the country, helping the country reach its net-zero emission goals by 2060, said I Pahala N. Mansury, deputy minister of State-Owned Enterprises.
Over the past weeks, PLN has engaged in intensive discussions with ACWA Power on technical and financial challenges involved in this collaboration, said President Director Darmawan Prasodjo of PLN.
“The collaboration has been going well. We have successfully mapped all the possibilities from both the commercial and technical aspects,” Darmawan said.
A joint study conducted by the three companies is expected to be carried out by the end of 2023 and completed by 2025, said Marco Arcelli, CEO of ACWA Power.
“Pupuk Indonesia is ready to contribute to the green hydrogen and green ammonia project,” President Director Achmad Bakir Pasaman of Pupuk Indonesia said, adding that the project will not only help develop the energy business ecosystem but also boost the national economy.
Green hydrogen is hydrogen produced from non-carbon-emitting sources. It can be used to produce green ammonia, which has a variety of applications including power plant fuel, transportation, and fertilizer production.
This collaboration between PT PLN, ACWA Power, and PT Pupuk Indonesia marks a big step forward in Indonesia's development of clean and renewable energy. The successful completion of the joint study in 2025 will help to the expansion of the green energy business ecosystem and the national economy.