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Saudi Arabia signs $1 billion green hydrogen project with Indonesia

Saudi Arabia-based ACWA Power plans to develop a $1 billion green hydrogen plant, called the Garuda Hydrogen Hijau (GH2) project, in collaboration with Indonesia's state-backed electricity provider PLN and fertilizer producer PT Pupuk Indonesia.

Saudi Arabia signs $1 billion green hydrogen project with Indonesia

Touted as the country's largest green hydrogen project, the GH2 project aims to produce 150,000 tons of green ammonia per year and will be powered by 600 megawatts of solar and wind energy. The project is expected to be operational in 2026.

Bidding for the engineering, procurement and construction (EPC) for the project is expected to begin in the first quarter of 2024, with financial close scheduled for late 2025, the companies said.

ACWA Power is developing a number of green hydrogen projects around the world and is working on the 1.2 million tons/year NEOM green hydrogen project in Saudi Arabia. The company has also started construction of Uzbekistan's first green hydrogen project, with the first phase planned to produce 3,000 tons of green hydrogen per year. PLN is exploring green hydrogen production opportunities with Masdar, based in the United Arab Emirates.

Indonesia is an ideal location for green hydrogen production as it has abundant solar energy resources. Therefore, Saudi Arabia and Indonesia have stepped into this cooperation.

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