Tuesday, July 16, 2024

PT Pupuk Indonesia advances green hydrogen project with PLN, Acwa Power

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State-owned chemical manufacturing holding company PT Pupuk Indonesia has confirmed the continuation of its green hydrogen project with State electricity company PT PLN and Saudi Arabian energy company Acwa Power, aiming for operational status by 2025.

Rozikin Busro, Senior Project Manager for Green Energy, Blue & Green Ammonia at PT Pupuk Indonesia, said that the companies are finalizing several frameworks to establish a joint venture.

“We are finalizing the off-taker scheme and the feasibility study (FS) with Acwa and PLN,” Rozikin said on Thursday, June 20, 2024.

Before the joint venture can be established, certain conditions must be met by the three companies, including the off-taker agreement, energy resource supply agreement, and several other requirements.

“If these conditions are met, God willing, the joint venture will be established this year to move forward with project development,” Rozikin added.

Upon establishing the joint venture, PT Pupuk Indonesia plans to build solar panels in Banyuwangi and a hydrogen plant in Gresik. The collaboration with Acwa Power and PLN was formalized through a Joint Development Agreement (JDA) during COP 28 in Dubai, aiming to develop green hydrogen and green ammonia in Indonesia.

PLN President Director Darmawan Prasodjo expressed the company’s commitment to providing clean energy through the development of green hydrogen and green ammonia.

The collaboration follows the Memorandum of Understanding (MoU) signed on November 14, 2022, during the G20 summit in Bali.

“Our focus on green hydrogen development is part of our effort to accelerate the energy transition,” Darmawan said in December 2023.

PLN will supply electricity from renewable energy sources to the green hydrogen plant and provide the necessary transmission capacity to connect these renewable energy plants to the integrated green hydrogen industrial system.

This green electricity will be transmitted through PLN’s network to PT Pupuk Indonesia’s plant, serving as the raw material for green ammonia.

PT Pupuk Indonesia President Director Rahmad Pribadi highlighted the synergy among state-owned enterprises (SOEs) as a significant contribution to accelerating Indonesia’s energy transition targets.

“This collaboration is not only for a better environmental future but also to promote Indonesia’s economic growth,” Rahmad noted.

Acwa Power CEO Marco Arcelli described the collaboration with PLN as transformative, focusing on innovation and leveraging energy transition opportunities for economic growth.

“We are tackling the challenges of the energy transition together, creating new innovations and fostering strong collaborations for the future,” Arcelli said.

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