ACWA Power signs deal for USD-1bn green H2 project in Indonesia

ACWA Power Co (TADAWUL:2082) has teamed up with two Indonesian state-owned companies to execute a USD-1-billion-plus (EUR 926m) green hydrogen project in the Southeast Asian country.

On the sidelines of the 28th United Nations Climate Change Conference (COP28) in Dubai, the Saudi company announced the signing of an agreement for this project with national electricity provider PT Perusahaan Listrik Negara (PLN) and fertiliser and chemical producer PT Pupuk Indonesia.

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The deal concerns the Garuda Hidrogen Hijau (GH2) Project, which, powered by 600 MW of solar and wind, is planned to produce 150,000 tonnes of green ammonia per year.

ACWA Power expects to launch the bidding process for the engineering, procurement and construction (EPC) job in the first quarter of 2024 and to achieve financial close at end-2025. The plan is to have the facility up and running in 2026.

The developer said that, meanwhile, work is well underway at the NEOM Green Hydrogen Project in Saudi Arabia. It is seen to become operational in late 2026.

(USD 1.0 = EUR 0.926)