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ACWA Power enters into green hydrogen partnership with PLN

Published by , Editorial Assistant
Global Hydrogen Review,

ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, has signed a Memorandum of Understanding (MoU) with PT Perusahaan Listrik Negara (PLN) – Indonesia’s state-owned electricity provider. The agreement involves the development of battery storage for renewable energy facilities, and green hydrogen development in Indonesia.

The MoU was signed at the B20/G20 Summit in Bali, Indonesia, and coincided with the state visit of HRH Mohammed Bin Salman Al Saud, Crown Prince and Prime Minister, Saudi Arabia, to Indonesia. Signatories included PLN CEO, Darmawan Prasodjo, and ACWA Power Vice Chairman and CEO, Paddy Padmanathan. The agreement was signed in the presence of Vice Minister of Ministry of State-Owned Enterprise of Indonesia, Mr. Pahala N. Mansury; Commissioner of PLN and Director General of Electricity of Ministry of Energy and Mineral Resources of Indonesia, Mr. Dadan Kusdiana; and Director of Indonesia Investment Promotion Center, Abu Dhabi UAE, Mr. Mohammad R.S. Iwan Ungsi.

According to the terms of the MoU, ACWA Power and PLN will jointly investigate several avenues of partnership which include: a project study for pump storage for a 600 - 800 MW hydroelectricity facility; investigating the possibility of a 4 GW battery energy storage system; and the development of a green hydrogen/ammonia facility that is powered by hydroelectricity.

The agreement lays out a clear pipeline of renewable energy and technological development for ACWA Power within the country, and involves a clear capacity building mandate for PLN’s employees.

Indonesia’s National General Energy Plan states that 23% of the country’s power should be generated via renewable energy sources by 2025. PLN is the country’s sole buyer of electricity produced by independent power projects, including power produced from renewable energy projects. As of 2021, the enterprise owns or operates nearly two-thirds of Indonesia’s power generation industry, which is approximately 65.5 GW of electricity.

“PLN's collaboration with ACWA Power had previously been established in the construction of floating solar power plants in Singkarak and Saguling through an MoU signed in October 2022. Today, PLN and ACWA added yet another collaboration with a broader commitment to exploring opportunities for joint business expansion, not only domestically, but also abroad. PLN and ACWA are exploring the development of renewable energy projects and technological advancements in solar PV, wind, hydro, pump storage, battery peaker, battery storage, tidal, and geothermal. In fact, we will jointly develop green hydrogen and green ammonia facilities,” he added.

ACWA Power entered Indonesia in 2022, as PLN awarded the company two contracts to develop floating solar photovoltaic plants in October 2022.

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