Heaptalk, Jakarta — PLN, through its sub-holdings PLN Energi Primer Indonesia (PLN EPI) and PLN Indonesia Power (PLN IP), has reaffirmed its commitment to enhancing the use of renewable energy in Indonesia. This commitment was demonstrated by signing a Head of Terms (HoT) for a Green Hydrogen Purchase Agreement with Pupuk Indonesia and ACWA Power at the Indonesia International Sustainability Forum (IISF) 2024.
Darmawan Prasodjo, President Director of PLN, stated that PLN is ready to support the government’s efforts to achieve the Net Zero Emissions (NZE) target by 2060 or earlier as the backbone of the country’s energy transition. PLN is also taking strategic steps to increase the use of renewable energy, including hydrogen.
This collaboration is part of a 10-year roadmap by the Ministry of State-Owned Enterprises (BUMN) to make Indonesia a green economy pioneer. The partnership between state-owned enterprises and international partners like ACWA Power is expected to accelerate the adoption of green energy across various sectors and strengthen Indonesia’s position in global climate change mitigation.
“This is proof that we walk the talk and are turning this commitment into tangible actions. This agreement is a strategic step for PLN in developing green hydrogen as a key raw material for green ammonia production, strengthening national energy resilience,” Darmawan said.
In this collaboration, Pupuk Indonesia will act as the off-taker of the green hydrogen produced by the Project Company’s Hydrogen Plant under the Joint Development Agreement (JDA) with ACWA Power and PLN. Rahmad Pribadi, President Director of Pupuk Indonesia, noted that this strategic collaboration will ensure the availability of green hydrogen as the primary raw material for green ammonia production. The green ammonia will then be used by Pupuk Indonesia in the production of urea and NPK fertilizers, thus supporting the sustainability of the national fertilizer industry’s raw material supply.
The collaboration in this project aligns with the government’s vision for energy transition and contributes to building a solid and sustainable food security system in Indonesia. “As non-renewable resources like natural gas will eventually be depleted, this is our strategic step to replace natural gas with water, allowing Pupuk Indonesia to continue supplying the fertilizers needed by farmers and remain a key player in supporting national food security,” Rahmad explained.
Rakhmad Dewanto, Director of Gas & BBM at PLN EPI, explained that green hydrogen is a crucial new energy source for achieving energy transition targets. Currently, PLN produces approximately 203 tons of green hydrogen annually from 22 hydrogen installations supported by Renewable Energy Certificates (REC) and geothermal sources.
He also revealed that PLN EPI will soon begin constructing green hydrogen facilities and a green ammonia plant in East Java, which is targeted to be operational by 2026-2027. The project is expected to produce 15 kilo tonnes per annum (KTA) of green hydrogen that can be used for various industrial purposes, such as environmentally friendly fertilizer production. “The green hydrogen and ammonia we produce will support a cleaner industrial sector in Indonesia and play a key role in decarbonization efforts,” Rakhmad concluded.
