PLN Collaborates With Pupuk Indonesia And ACWA Power For Hydrogen And Green Amonia Production
PT PLN (Persero) through the subholding of PLN Energi Primary Indonesia (PLN EPI) and PLN Indonesia Power (PLN IP) signed the Head of Terms (HoT) of the Green Hydrogen Purchase Agreement with PT Pupuk Indonesia (Persero) and ACWA Power in the Indonesia International Sustainability Forum (IISF) 2024 agenda.
In this collaboration, Pupuk Indonesia will act as off-taker of green hydrogen produced by Project Company's Hydrogen Plant from the Joint Development Agreement (JDA) with ACWA Power and PLN.
President Director of Pupuk Indonesia, Rahmad Pribadi said, this strategic collaboration will ensure the availability of green hydrogen supply as the main raw material for green ammonia production.
"This green amonia can then be utilized by Pupuk Indonesia in the production of urea and NPK fertilizers, thus supporting the sustainability of the national fertilizer industry raw material supply," he said in a statement to the media, Seras, September 17.
Director of Gas & BBM PLN EPI, Rakhmad Dewanto explained that green hydrogen is one of the important new energies in achieving the energy transition target. Currently, PLN produces around 203 tons of green hydrogen per year from 22 hydrogen installations supported by the Renewable Energy Certificate (REC) as well as geothermal sources.
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He also explained that PLN EPI will soon begin construction of green hydrogen facilities and green ammonia plants in East Java, which are targeted to operate in 2026-2027. This project is estimated to be able to produce 15 kilo tons per annum (ktpa) of green hydrogen which can be applied for various industrial purposes, such as environmentally friendly fertilizer production.
"The green hydrogen and green ammonia we produce will support the cleaner industrial sector in Indonesia, as well as play a key role in decarbonization efforts," he said.