ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, and PERTAMINA New & Renewable Energy (PERTAMINA NRE), have signed a joint development agreement (JDA) to develop the core utilities supply for the Tuban Grass Root Refinery and Petrochemical Project.
The agreement was signed by Dannif Danusaputro, CEO of PNRE and Paddy Padmanathan, Vice Chairman and Chief Executive Officer of ACWA Power, at the B20 Summit. The ceremony was witnessed by Indonesian Minister of Energy and Mineral Resources Arifin Tasrif, Indonesian Chairman of Chamber of Commerce and Industry Arsjad Rasjid, Chair of B20 Indonesia Shinta Kamdani, and CEO & President Director of Pertamina Nicke Widyawati.
A refinery capable of producing aromatics and ethylene, the Tuban facility is located in Java, eastern Indonesia. The scope of the JDA comprises development of a 575 MW power generation facility, a steam generation component with a capacity of 3,288 tonnes per hour; and a water desalination plant with a total capacity of 363,480 m3/day.
“With climate change implementation strategies at the top of the global consciousness, an integrated approach that can enable decarbonisation in a responsible and reliable manner is key to mitigating the impact of carbon-intensive industries. ” said Paddy Padmanathan, Chief Executive Officer and Vice Chairman of ACWA Power
“As a company that is driving the transition, we are proud and privileged to be collaborating with such a visionary company as PERTAMINA NRE, leveraging our extensive expertise in delivering renewable energy and desalinated water at scale, and now green hydrogen as well, to deliver successful outcomes,” he added.
Developing low-carbon solutions is PERTAMINA NRE’s core business focus, along with renewable energy development, and building future businesses. As a subsidiary of the state owned PERTAMINA group which has committed to a net zero emissions target by 2060, PERTAMINA NRE is at the front of building green businesses and developing decarbonisation initiatives in the Republic of Indonesia.
“This is a strategic collaboration where we will take part in supporting Tuban GRR&P project that will play a key role in building national energy security. It is very exciting that we are going to support Tuban GRR&P project by providing low carbon solutions. Having a reputable strategic partner is very crucial in terms of technology transfer and risk sharing. We believe this collaboration will create significant value” said Dannif Danusaputro, CEO, PERTAMINA NRE
The Tuban GRR&P has been identified by the Indonesian government as a project of national strategic importance that will enable national energy security and advance the domestic petrochemical industry.
ACWA Power’s power and water desalination plant for the Tuban GRR&P is expected to be operational by Q1 2027.
Image credit ACWA Power