Headway in ACWA Power’s renewable ammonia projects
By on December 22, 2023
Indonesia’s largest renewable ammonia project
On the sidelines of COP28 in Dubai, ACWA Power announced plans to develop the Garuda Hidrogen Hijau (GH2) Project, a 150,000 tonnes per year renewable ammonia project powered by 600 MW of wind and solar energy.
Located in Indonesia, the facility will be developed in partnership with two state-owned entities, electricity provider PT Perusahaan Listrik Negara (PLN) and fertiliser & chemical producer PT Pupuk. It is scheduled for commercial operations in 2026, with estimated project costs north of $1 billion. Bidding for the project’s engineering procurement and construction (EPC) will commence in Q1 of 2024, while financial close is planned for the end of 2025.
This is Pupuk’s first renewable ammonia project, having signed an MoU with Copenhagen Atomics earlier this year for a nuclear powered, 1 million tonnes per year ammonia plant. Pupuk has unveiled an ambitious clean ammonia roadmap, with the goal to produce 13 million tonnes per year by 2050 based on various low-carbon energy resources.
We are honoured to deepen our relationships with the government and government entities of this vibrant, ambitious nation through this new green hydrogen project. As we expand our footprint in Indonesia, we remain committed to supporting sustainable progress, for a greener future for all.
Marco Arcelli, CEO of ACWA Power, in his organisation’s official press release, 6 December 2023
Renewable hydrogen is one of the answers to the energy transition. Therefore, the development of green hydrogen is our focus in efforts to accelerate the energy transition. We see a strong commitment from the government, PLN, Pupuk Indonesia and ACWA Power, therefore we are ready to support this joint development effort of green hydrogen and green ammonia to achieve common goals.
Darmawan Prasodjo, President Director and CEO of PLN, in ACWA Power’s official press release, 6 December 2023
Mega-project near the Suez Canal
Following an MoU signed in 2022, ACWA Power, and a number of Egyptian state-owned entities (including the Suez Canal Economic Zone) have progressed a mega-project on the Suez Canal. A framework agreement has been signed to develop the first phase of a 600,000 tonnes-per-year renewable ammonia project, entailing an investment of more than $4 billion. A second phase – raising production capacity to 2 million tonnes-per-year – is already planned.
We commend our partners for their bold step into producing the fuel for the future, for which there will be great demand in Europe and the rest of the world. Egypt is well-positioned to become one of the world’s top producers of green hydrogen and we are elated to be a part of the country’s energy transition.
Marco Arcelli, Chief Executive Officer of ACWA Power in his organisation’s official press release, 20 December 2023
Project underway in Uzbekistan
ACWA Power has also commenced work on the first phase of a 3,000 tonne-per-year renewable hydrogen project in Uzbekistan. This follows the signing of the hydrogen and power purchase agreements in May 2023.
Announced in January this year and set to be completed in two phases, the project will produce 500,000 tonnes-per-year of renewable ammonia powered by 2.4 GW of wind energy at full capacity.
This will be ACWA Power’s second utility-scale renewable hydrogen project under-construction, with work already commenced on the 1.2 million tonnes-per-year NEOM project in Saudi Arabia (scheduled for completion in 2026). A joint venture between ACWA Power, NEOM and Air Products, this project reached FID in May this year. The NEOM project also recently received its first major delivery of wind turbines for hydrogen production.
This marks a significant milestone in the history of Uzbekistan’s energy revolution, and ACWA Power is honoured to be leading the charge. I would like to extend my gratitude to all those who have contributed to the success of these projects and reaffirm our enduring commitment to continue our collaboration and investment in Uzbekistan’s bright, sustainable future.
Mohammad Abunayyan, ACWA Power Founder and Board Chairman, in his organisation’s official press release, 29 November 2023