Pupuk Indonesia, PLN, ACWA team up to develop green hydrogen

State-owned fertilizer firm PT Pupuk Indonesia, state electricity company PT Perusahaan Listrik Negara (PLN) and Saudi Arabia’s ACWA Power have signed a Joint Development Agreement (JDA) in developing green hydrogen and green ammonia in Petrokimia Gresik Industrial Area. . The three parties signed the JDA on the sideline of COP28 in Dubai, Uni Arab Emirates (UAE) on Dec. 3, 2023.

President Director of Pupuk Indonesia Rahmad Pribadi said the signing of the JDA is a follow-up of the Joint Development Study Agreement (JDSA), signed by the three parties in July this year. The JDSA team has generated information and data as well as conducted a field survey before they move ahead with the next step.

As a follow-up of the signing of the JDA, the three parties will form a joint-venture entity, with ACWA Power acting as the coordinator. The JV firm will focus on carrying out green hydrogen and ammonia projects, including the selection of EPC (Engineering, Procurement, and construction) and marketing of green ammonia projects in the domestic and global markets.

“This is a global collaboration to support the reduction of carbon emission through the development of green hydrogen and green ammonia,” said Rahmat in a statement on Monday. He said the cooperation will stimulate a conducive investment climate for the development of a green energy ecosystem in Indonesia and at the same time support the government’s drive to attain a Net Zero Emission target in 2060.

Kujang Industrial Park
Apart from the above agreement, on the same occasion, Pupuk Indonesia and PLN have also signed a joint development study agreement (JDSA) to develop green hydrogen and green ammonia in the Kujang Industrial Estate (KIE) in Cikampek, West Java. KIE is developed and managed by PT Kawasan Industri Kujang Cikampek a subsidiary of PT Pupuk Kujang, which is a subsidiary of PT Pupuk Indonesia. The project aims to meet future clean energy needs as well as maintain the sustainability of the supply of ammonia as a raw material for fertilizer. Ammonia is the main raw material to produce fertilizers such as Urea, NPK, ZA, and so on. "This collaboration further strengthens Pupuk Indonesia's position as a global player which in the future will not only be a provider of fertilizer to support food security but also a provider of clean ammonia as a source of clean energy," said Rahmad.