Aslan Energy Capital (AEC), Singapore along with PT Agri Maritim Sulteng (AMS), a provincial government company of Central Sulawesi, Indonesia unveil the Green Energy Hub development plan to serve the industrial and mining sector in the Special Economic Zone (SEZ) of the city of Palu.
Aslan Energy Capital, Singapore and PT Agri Maritim Sulteng, Indonesia have entered into a cooperation agreement, whereby Aslan Energy Capital will invest, develop and execute a multi-faceted green energy hub project in Palu, Central Sulawesi through the design, funding, construction, commissioning, and operation of a solar farm and a first of its kind green ammonia production facility in Indonesia with the active support and engagement of Government of Central Sulawesi. The joint development and cooperation agreement also includes the establishment of a carbon neutral Liquefied Natural Gas (LNG) import terminal within the Palu SEZ, adjacent to the Port of Pantaloan, that will enable clean power generation for the mining and smelter industry in Central Sulawesi.
The Palu Green Energy Hub is set to deliver up to 400 MW of solar power production and is in line with Indonesia’s national renewable energy generation targets for 2030. Palu Green Energy Hub will consist of three major energy mix components to ensure reliable, stable, and affordable power as well as a clean fuel supply for Central Sulawesi. As a first stage, a 100 MW solar farm which will primarily supply industries in the Palu SEZ will commence operations by Q4 2023. Additional solar capacity will be modularly implemented over the next four years and will power the electrolysers of the 180 tonnes/day green ammonia production facility at Palu SEZ.
This investment is important for increasing the renewable energy mix in the Central Sulawesi Province and a major stepping stone for the provincial government to support energy transformation, enabling the Palu SEZ to pioneer the application of renewable energy in industrial areas with world class standard. “The Palu Green Energy Hub aims to promote a sustainable ecosystem within the Palu SEZ, and we plan to be a role model for minimising environmental impacts in general and shifting to green energy that will accelerate regional development, catalyse the economic growth in SEZ and enable industries to shift towards a sustainable future”, said Mr. Sony Panukma Widianto, President Director of PT Agri Maritim Sulteng.
The onshore LNG import terminal at Palu will have an import capacity of 2 MTPA, which will supply carbon neutral LNG for the captive 1.2 GW combined cycle powerplant. The LNG marine facilities will be developed in partnership with the Port of Pantaloan, a commercial port in Central Sulawesi, and will almost double the port’s cargo handling capacity. This LNG terminal will ensure sufficient power generation for the regions nickel smelter industries and provide LNG via virtual pipelines (ISO LNG containers and trucking) to reduce the carbon footprint of the mining industry.
AEC and AMS recently signed a Cooperation Agreement outlining the project execution target schedule for the Green Energy Hub in the presence of the Governor of Central Sulawesi, Gov. Rusdy Mastura. “The Government of Central Sulawesi is very pleased with this green initiative and we are glad to have Aslan Energy Capital as our investment and development partner in leading this energy hub, along with PT Agri Maritim Sulteng. The industrial clusters, maritime sector, and mining industry in Central Sulawesi will greatly benefit from this project and we will provide our full support to fast track its execution. The project will act as a model to be replicated in other regions, and support the transition to cleaner energy sources in Central Sulawesi, as a contribution to Indonesia’s overall energy strategy”, the Governor of Central Sulawesi, Gov. Rusdy Mastura commented.
“The Palu Green Energy Hub brings multiple benefits to the people of Central Sulawesi, our regional partners, and customers in Indonesia. This mega project will promote industrial growth, create job opportunities, enable greener mining activities, accelerate the progress in achieving the ESG goals and SDG targets of Central Sulawesi and bring substantial additional revenues to the City of Palu and the regional development for the State of Central Sulawesi. Moreover, once domestic demand for green ammonia is met, we plan to export the excess supply to markets like Japan and Korea, thereby expanding the reach of the green hub, positioning Central Sulawesi as a green energy leader in SE Asia and attracting further industrial operators to the State” said Dr. Muthu Chezhian, Group Managing Director of Aslan Energy Capital, Singapore. “Indonesia is our group’s key strategic hub in Asia Pacific. This project is the largest to date in our Indonesian portfolio alongside our two other largescale blue hydrogen and LNG developments ongoing in Java, which is a further testimony to our commitment and conviction in the country as a key global energy hub.” Feasibility Studies have been completed and the engineering and permitting process is moving on an expedited track with support from the provincial authorities and the Governor’s office, with construction expected to begin in Q4 of 2022 for the 100 MW solar farm.
Ammonia plays an important role as a fertilizer in the agricultural industry and it is a critical feedstock in manufacturing and chemical industries. By utilizing green ammonia, carbon footprint can be reduced by up to 90%. According to the U.S. Department of Energy, ammonia can also serve as a low or zero-carbon flexible energy carrier, and global maritime infrastructure is already well established to store and transport it. Green ammonia is widely expected to be the fuel of the future and the Palu SEZ green ammonia facility will play a key role in transforming the energy map of SE Asia.