PLN Signs Green Hydrogen Agreement With Pupuk Indonesia And ACWA Power To Boost Renewable Energy in Indonesia
PLN, through subsidiaries PLN EPI and PLN IP, reaffirmed its commitment to renewable energy by signing a Green Hydrogen Purchase Agreement with PT Pupuk Indonesia and ACWA Power at the Indonesia International Sustainability Forum 2024. The partnership aims to boost green hydrogen production for green ammonia, supporting Indonesia’s Net Zero Emissions goal and ensuring sustainable fertilizer supply for national food security.
PT PLN (Persero), through its subsidiaries PLN Energi Primer Indonesia (PLN EPI) and PLN Indonesia Power (PLN IP), reaffirmed its dedication to advancing renewable energy use in Indonesia. This commitment was showcased by the signing of the Head of Terms (HoT) of the Green Hydrogen Purchase Agreement with PT Pupuk Indonesia (Persero) and ACWA Power during the Indonesia International Sustainability Forum (IISF) 2024.
PLN President Director, Darmawan Prasodjo, emphasized PLN’s role as a key player in the country’s energy transition. He reiterated PLN’s support for the government’s goal of achieving Net Zero Emissions (NZE) by 2060 or earlier. Hydrogen, a crucial element in this journey, plays a significant part in PLN’s strategy to increase renewable energy utilization.
“This agreement marks a tangible step in our commitment to developing green hydrogen, which will serve as a vital raw material for producing green ammonia, ultimately enhancing national energy security,” Darmawan said.
The collaboration aligns with the 10-year roadmap of the Ministry of State-Owned Enterprises (BUMN), aimed at positioning Indonesia as a pioneer in the green economy. By working with BUMN partners and international players like ACWA Power, Indonesia aims to accelerate green energy adoption and strengthen its global role in combating climate change .
In this agreement, PT Pupuk Indonesia will act as the off-taker of green hydrogen produced by the joint project between ACWA Power and PLN. Rahmad Pribadi, President Director of Pupuk Indonesia, highlighted the importance of this collaboration in ensuring a stable supply of green hydrogen, which is critical for producing green ammonia. This green ammonia will be used in producing urea and NPK fertilizers, ensuring a sustainable supply for the national fertilizer industry.
“Natural gas, a non-renewable resource, is depleting. Our strategic decision to replace it with water-based hydrogen ensures that Pupuk Indonesia can continue to provide essential fertilizers to farmers, securing national food security,” Rahmad stated.
PLN EPI Gas & Fuel Director, Rakhmad Dewanto, explained that green hydrogen is essential for achieving Indonesia’s energy transition goals. PLN currently produces around 203 tons of green hydrogen annually from 22 installations, utilizing geothermal energy and Renewable Energy Certificates (REC). A new green hydrogen and ammonia plant is also set to be constructed in East Java, with operations expected to begin between 2026 and 2027. This facility will produce approximately 15 kilotonnes of green hydrogen per year, supporting various industrial needs and contributing to a cleaner, more sustainable industrial sector in Indonesia.
“The green hydrogen and ammonia we produce will play a vital role in decarbonizing industries across the country,” Dewanto added.
This collaboration not only aligns with Indonesia’s energy transition vision but also supports a stronger, sustainable food security system by reducing dependence on non-renewable resources and boosting environmentally friendly practices in industrial production.
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