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Saudi Arabia’s ACWA Power to develop green hydrogen project in Indonesia

Green hydrogen has potential environmental benefits as well as drawbacks and is being pursued by Saudi Arabia, the United Arab Emirates and other Gulf states.
High-level segment of the UNFCCC COP28 Climate Conference at Expo City Dubai on Dec. 2, 2023, in Dubai, United Arab Emirates.

A Saudi power company signed a green hydrogen deal with Indonesia at the COP28 climate change conference in Dubai on Wednesday, showing the Gulf’s continued interest in the energy form.

ACWA Power said it will develop the Garuda Hidrogen Hijau Project with Indonesia’s state electricity provider PT Perusahaan Listrik Negara and the Indonesian state-owned fertilizer company PT Pupuk Indonesia. The purportedly largest green hydrogen facility in the country will produce 150,000 tonnes of green ammonia per year. The project will cost more than $1 billion, run on 600 megawatts of solar and wind power, and is expected to start commercial operations in 2026. The construction bidding process is expected to start in the first quarter of 2024, ACWA Power said in a press release.

Hydrogen can be used as an energy source when it is separated from water via electricity. When the separation process is powered by renewable energy like solar and wind power, the end product is referred to as green hydrogen. Green hydrogen in liquid form is known as green ammonia.

Why it matters: The 2023 United Nations Climate Change Conference (COP28) is currently taking place in Dubai and has yielded several major energy deals and pledges so far. On Tuesday, the Emirati renewable energy firm Masdar announced a $16 billion deal to develop green hydrogen and wind projects in the United States and Europe. The United Arab Emirates has been criticized for including oil and gas companies in the conference, and the event is being led by Abu Dhabi National Oil Company head Sultan Al Jaber.

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