Saudi-listed energy company ACWA Power has announced that its renewable ammonia project in Indonesia is expected to begin commercial operations this year, marking a significant milestone in the country’s green hydrogen ambitions.
The project, known as the Garuda Green Hydrogen (GH2) Project, is being developed in partnership with state-owned utility company PT PLN and fertilizer producer PT Pupuk Indonesia. Indonesia expects the project to reach full operational readiness this year, signaling the country’s entry into large-scale green hydrogen production in the Asian market.
“Green hydrogen is one of the key solutions for the energy transition. Therefore, its development has become one of our priorities in accelerating Indonesia’s energy transition,” PLN President Director Darmawan Prasodjo said as quoted by Energiesmedia.com on Saturday, January 3, 2026.
The flagship hydrogen project will be powered by a combination of solar and wind energy with a total installed capacity of 600 megawatts. Once operational, it is expected to produce up to 150,000 tons of green ammonia annually, with an estimated project value of around US$1 billion (Rp16.77 trillion).
ACWA Power Chief Executive Officer Marco Arcelli said the project reflects the company’s growing commitment to Indonesia’s clean energy transition.
“We are honored to deepen our relationship with the government and state-owned entities of this dynamic and ambitious country through this new green hydrogen project,” Arcelli said, on Saturday. “As we expand our footprint in Indonesia, we remain committed to supporting sustainable progress for a greener future for all.”
ACWA Power has strengthened its presence in Indonesia’s energy sector following the government’s decision to award the company contracts to develop two offshore floating solar photovoltaic power plants. The green hydrogen initiative aligns with a broader global trend, following the launch of projects such as the 100-megawatt Puertollano green hydrogen plant in Spain, which began operations last year.
Pupuk Indonesia President Director Rahmad Pribadi described the collaboration as a strategic step that extends beyond environmental benefits.
“This partnership is extraordinary. It is not only about achieving a better environmental future, but also about fostering stronger economic growth for Indonesia in the years ahead,” Rahmad said on Saturday.
Indonesia’s clean energy ambitions are expected to gain further momentum as the Garuda Green Hydrogen Project progresses toward full-scale operations in 2026, positioning the country at the forefront of green hydrogen production in Southeast Asia.
The project comes amid renewed global commitments to clean energy development following recent G20 discussions, where participating countries reaffirmed their pledge to accelerate renewable energy projects to meet emissions reduction targets under the 2016 Paris Agreement. Indonesia has been advancing its renewable energy agenda through pilot initiatives such as GH2, which is expected to pave the way for a new era of cleaner energy production in the country.
