JAKARTA (12/7) – PT Pupuk Indonesia (Persero) is fully committed to developing clean energy in the country. This time, the Company is collaborating with PT PLN (Persero) to jointly develop integrated green hydrogen and green ammonia. This is stated in the joint development study agreement with ACWA Power Company.

The Joint Development Study Agreement on the Development of Integrated Green Hydrogen and Green Ammonia was witnessed directly by the Deputy Minister of BUMN I Pahala Mansury and signed by Bakir Pasaman as the Main Director of Pupuk Indonesia, Darmawan Prasodjo as the Main Director of PLN, and Marco Arcelli as the CEO of ACWA Power Company.

SOE Deputy Minister I, Pahala Mansury said that the green hydrogen and green ammonia collaboration was a follow-up to the clean energy development that had previously been carried out in the green industrial cluster in Aceh.

"The Ministry of BUMN supports the cooperation in the development of green hydrogen and green ammonia carried out by Pupuk Indonesia, PLN, and ACWA Power Company. This collaboration is in the context of developing clean energy in East Java, especially in the Gresik Petrochemical Area," said Pahala.

President Director of Pupuk Indonesia, Bakir Pasaman, revealed that the integrated green hydrogen and green ammonia development cooperation with PLN is a follow-up to the implementation of Pupuk Indonesia for clean energy development which had previously been collaborated with ACWA Power Company.

"Pupuk Indonesia welcomes the cooperation in the development of green hydrogen and green ammonia with PLN and ACWA Power Company because this clean energy is in line with the energy security program which is the focus of the Government in the 2024 Golden Indonesia Vision," said Bakir Pasaman.

In this joint study agreement, Bakir said that the green hydrogen and green ammonia factories would be built in the Gresik Petrochemical Industrial Area, East Java. At least there is a potential source of clean energy from PLTS and PLTB with a maximum capacity of 200 MW which produces green hydrogen which is then converted to green ammonia at Petrokimia Gresik.

Bakir further said that the three parties were also collaborating in developing business strategies and studying the potential for forming a joint venture for a green hydrogen plant and a green ammonia plant. It is hoped that this cooperation will benefit all parties, both investors and the domestic industry.

"Through this collaboration, Pupuk Indonesia together with PLN and ACWA Power Company will evaluate the conversion of green hydrogen to green ammonia using the existing Gresik Ammonia facility, as well as open opportunities for cooperation with long-term green ammonia off-takers," he said.

It can be seen, green hydrogen or green hydrogen is hydrogen obtained from clean sources without carbon emissions. ACWA Power Company is developing the NEOM green hydrogen project in Saudi Arabia with a green energy requirement of 40 GW and is one of the largest green hydrogen projects in the world. Apart from that, ACWA has also developed the Noor Energy Project in the UAE-Abu Dhabi which is the largest concentrated solar power in the world, as well as the Shuaa Solar Power Energy Project.

Therefore, Pupuk Indonesia as one of the world's largest ammonia producers can play a strategic role in supporting clean energy through the development of green ammonia in Indonesia. As is known, green ammonia is a chemical compound that can be a source of clean energy in the future as well as a medium for transporting hydrogen or a hydrogen carrier.