Saudi-listed energy company ACWA Power has said its renewable ammonia project in Indonesia is expected to begin commercial operations this year, marking an important step in the country’s push toward green hydrogen and clean energy development, reports Indonesia Business Post.
The project, called the Garuda Green Hydrogen (GH2) Project, is being developed in partnership with state-owned power utility PT PLN and fertilizer major PT Pupuk Indonesia. The Indonesian government expects the project to become fully operational this year, positioning the country as a new player in large-scale green hydrogen production in Asia.
PLN President Director Darmawan Prasodjo said green hydrogen is seen as a major solution for the global energy transition and has become a priority for Indonesia as it works to speed up its shift to cleaner energy sources.
The project will be powered by a mix of solar and wind energy with a combined installed capacity of 600 megawatts. Once operational, it is expected to produce up to 150,000 tonnes of green ammonia each year. The total investment value of the project is estimated at around $1 billion (about Rp16.77 trillion).
ACWA Power Chief Executive Officer Marco Arcelli said the project highlights the company’s growing involvement in Indonesia’s clean energy transition. He said ACWA Power values its cooperation with the Indonesian government and state-owned companies and remains committed to supporting sustainable development and long-term environmental goals in the country.
ACWA Power has expanded its presence in Indonesia’s energy sector after being awarded contracts to develop two offshore floating solar power projects. The green hydrogen project follows similar developments globally, including large-scale green hydrogen plants that have recently begun operations in Europe.
Pupuk Indonesia President Director Rahmad Pribadi said the partnership is an important move not only for environmental progress but also for strengthening Indonesia’s economy in the long term. He said the project is expected to create new opportunities and support future growth.
Indonesia’s clean energy programme is expected to gain further momentum as the Garuda Green Hydrogen Project moves toward full-scale operations in 2026. The project is seen as a key step in placing Indonesia among leading green hydrogen producers in Southeast Asia.
The initiative comes at a time when countries worldwide are renewing commitments to clean energy following recent G20 discussions, where members reaffirmed plans to accelerate renewable energy projects in line with emissions reduction targets under the Paris Agreement. Indonesia has been advancing its renewable energy agenda through pilot projects such as GH2, which is expected to help shape a cleaner energy future for the country.
