Acwa Power’s SAR 1.5 bn desalination play in Indonesia

A splash of salt in Indonesia: Acwa Power has signed a USD 400 mn (SAR 1.5 bn) agreement with Indonesia’s state-owned PT Garam to develop what they describe as the country’s first seawater desalination and industrial salt production facility, according to a press release. The plant will produce 62.5k cbm of water per day and 500k tons of salt per year using seawater reverse-osmosis technology.

On-the-ground details: Set for construction in Manyar, East Java’s Gresik area, the project will be established under a build-own-operate framework through a local project company, funded through debt secured by the plant’s projected revenues. Acwa will handle financing, engineering, construction, and staffing, while PT Garam manages site preparation, sales channels, and regulatory coordination.

What’s the big idea? The venture aims to curb Indonesia’s reliance on foreign supply — driven by some 4 mn tons of industrial salt imported annually — by establishing domestic production.

More investment in Indonesia: Just last month, Acwa Power was among several Saudi firms that inked agreements and MoUs worth roughly USD 27 bn with Indonesian counterparts to invest in clean energy, petrochemicals, and aviation fuel. The renewables giant signed two separate MoUs with a combined value of USD 10 bn to develop the Southeast Asian country’s clean energy industry.