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New Energy World magazine logo
New Energy World magazine logo
ISSN 2753-7757 (Online)

Major green hydrogen project for Indonesia

13/12/2023

News

Graphic of green coloured hydrogen molecules floating against a green background Photo: Adobe Stock
The Garuda Hidrogen Hijau (GH2) project in Indonesia will be the largest of its kind in the country

Photo: Adobe Stock

Saudi-listed ACWA Power is set to develop a major green hydrogen facility in Indonesia with PT Perusahaan Listrik Negara (PLN), Indonesia’s state-owned electricity provider and PT Pupuk Indonesia, a state-owned fertiliser and chemical producer.

The Garuda Hidrogen Hijau (GH2) project will run on 600 MW of solar and wind power and will produce 150,000 t/y of green ammonia. The cost of the project is estimated to be upwards of $1bn.  

 

The bidding process for engineering procurement and construction for the GH2 project is expected to start in 1Q2024, with financial close planned for the end of 2025. Commercial operations are expected to start in 2026.  

 

Indonesia recently announced its Comprehensive Investment and Policy Plan (CIIP), a new pathway which aims to increase Indonesia’s share of renewables from the initially announced 34% to 44% and limit emissions to 250mn tCO2e by 2030, from a previous target of 290mn tCO2e.

 

Launch of flagship initiatives to unlock benefits of hydrogen

Meanwhile, a suite of initiatives was launched at a COP28 hydrogen roundtable, including:

  • Intergovernmental Declaration of Intent on Mutual Recognition of Certification Schemes for Hydrogen and Hydrogen Derivatives – covering over 80% of the future global market in hydrogen and its derivatives.
  • ISO methodology – providing a global benchmark for greenhouse gas (GHG) emissions assessment of hydrogen pathways on a life-cycle analysis basis.
  • Public-Private Action Statement – on cross-border trade corridors in hydrogen and derivatives in partnership with the International Hydrogen Trade Forum (IHTF) and the Hydrogen Council.

 

The inaugural IHTF roundtable was joined by over two dozen Ministerial officials of prospective hydrogen importing and exporting countries (Australia, Belgium, Brazil, Canada, Egypt, France, Germany, India, Italy, Mauritania, Morocco, Namibia, Oman, Singapore, South Africa, the UK, and the US) as well as a delegation of Hydrogen Council executives representing the global industrial leaders in hydrogen (Air Liquide, Air Products, Baker Hughes, Chart Industries, Hy24, InterContinental Energy, Kawasaki Heavy Industries, Linde, Masdar, NextEra Energy Resources, OCI, Port of Rotterdam Authority, Snam, Topsoe, and Thyssenkrupp Nucera).

 

To find out more about Indonesia’s energy transition, visit the Energy Institute Statistical Review Country Transition Tracker