PT PLN, ACWA Power, And PT Pupuk Indonesia Collaborate For Green Hydrogen Development In Indonesia

Representational image. Credit: Canva

In a landmark collaboration, PT PLN (Persero), ACWA Power, and PT Pupuk Indonesia (Persero) have forged a Joint Development Study Agreement (JDSA) to accelerate the growth of the hydrogen business in Indonesia. The three companies are united in their pursuit of green energy solutions and have set their sights on developing green hydrogen as a vital raw material for ammonia production in Gresik, East Java.


The Deputy Minister of State-Owned Enterprises (BUMN), I Pahala N. Mansury, expressed the government’s unwavering commitment to fostering green industry clusters and the development of new renewable energy (EBT) projects. The joint green hydrogen study signifies a significant stride towards Indonesia’s ambition to pioneer green energy solutions, aligning with its target of achieving net-zero emissions by 2060. The collaboration is also expected to foster stronger partnerships between Indonesia and international institutions in the green energy sector.

The collaboration is focused on tapping into the potential of green ammonia production at the existing Petrokimia Gresik facility, promoting the adoption of clean energy sources across the nation. The anticipated results of the joint study, as emphasized by Mr Pahala, could propel Indonesia to become a prominent player in the hydrogen business within the Southeast Asian market.

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PLN’s Main Director, Darmawan Prasodjo, expressed optimism in overcoming technical and investment challenges through intensive discussions with ACWA Power, highlighting the synergy achieved in mapping out commercial and technical possibilities. This collaborative effort is expected to fortify Indonesia’s green energy business ecosystem.

ACWA Power’s CEO, Marco Arcelli, commended the dedication shown by all parties involved, emphasizing the shared commitment to driving the energy transition forward. The joint study is slated to commence at the end of 2023, with completion expected by 2025.

Achmad Bakir Pasaman, the Main Director of Pupuk Indonesia, expressed gratitude for the government’s full support in enabling the joint study. Pupuk Indonesia is fully prepared to contribute significantly to the realization of this integrated green hydrogen and green ammonia project, with a focus on bolstering the nation’s energy business ecosystem and bolstering the national economy.

Green hydrogen, as a clean and carbon-free source, holds immense promise in powering a sustainable future. By utilizing green hydrogen as a raw material for green ammonia, Indonesia aims to drive the adoption of cleaner fuels in power plants, transportation, and fertilizer production.

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The collaboration marks a crucial milestone in Indonesia’s efforts to transition to greener energy sources and underscores its commitment to tackling climate change with innovative and sustainable solutions.

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