PT Pupuk Indonesia (Persero) has signed a Head of Key Terms (HoT) agreement for green hydrogen procurement with ACWA Power, as well as PLN Energi Primer Indonesia and PLN Indonesia Power. This is part of the company’s plans to scale-up green ammonia development. This green hydrogen development partnership between the three entities – Pupuk Indonesia, PLN, and ACWA Power began last year.
This agreement will ensure availability of green hydrogen as the main raw material for green ammonia production for Pupuk Indonesia. The green ammonia, thus produced, will be used by Pupuk Indonesia for making urea and NPK fertilizers.
A joint venture has been formed among ACWA Power, PLN Energi Primer Indonesia and PLN Indonesia Power and a Joint Development Agreement has also been signed in December 2023. This joint venture will construct the green hydrogen plant and will be the selling entity responsible for producing and managing green hydrogen. Further, the green hydrogen will be supplied to Pupuk Indonesia and other partners under a long-term contract of 25 years.
