ACWA Power to advance Indonesia’s green hydrogen goals

Saudi Arabia-based power generation specialist ACWA Power (ACWA) has made its first foray into Southeast Asia following an agreement with Indonesia’s state-owned electricity utility PTA Perusahaan Listrik Negara (PLN) to build two floating solar photovoltaic (PV) facilities.

Announced today (1st Nov), the projects will see ACWA leading the development of the 60MWac (megawatt of alternating current) Saguling Floating Solar PV project and the 50MWac Singkarak Floating Solar PV project.

At a cost of around $105m, the projects will accelerate Indonesia’s National General Energy Plan, which includes a focus on green hydrogen production. According to the country’s Minister of Energy and Mineral Resource, Arifin Tasrif, the country is tightening its national emissions reduction targets ahead of the UN COP27 climate change conference.

Green hydrogen can be produced by solar energy via either water electrolysis using solar generated electricity or solar water splitting, Solar PV converts solar energy into the electric energy needed to achieve water electrolysis, resulting in the production of very pure green hydrogen.

According to Tasrif, by producing green hydrogen and harnessing carbon capture and storage (CCS) technologies, Indonesia aims to reduce emissions by 32% – equivalent to 912m metric tonnes of CO2 (mtCO2) to help limit the rise in global temperatures to no more than 1.5C to 2C compared with preindustrial times.

“For companies like ACWA Power, who are intent on the energy transition, this country is an exciting market as there is government support, an understanding of global challenges, considerable demand and an urgent need to supply the country’s numerous residents,” said Clive Turton, Chief Investment Officer of ACWA Power.

ACWA holds a 49% equity stake in both the Saguling and Singakarak Floating Solar PV projects, with Indonesia Power – a subsidiary of PLN – holding the remainder.

Responsible for around 69% of generation capacity in Indonesia, PLN is the sole buyer of electricity produced by independent power plants in the country, including electricity generated from renewable energy sources.

The next step will see the partners finalising power purchase agreements for both projects.

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