State-owned fertilizer producer PT Pupuk Indonesia is set to develop the world’s first hybrid green ammonia project in collaboration with two Japanese corporations − ITOCHU Corporation (ITOCHU) and Toyo Engineering Corporation (TOYO).
This collaboration was formalized through the signing of a Joint Development Agreement (JDA) titled “Green Ammonia Initiative from Aceh” (Project GAIA) during the 2nd Asia Zero Emission Community (AZEC) Ministerial Meeting held in Jakarta.
Rahmad Pribadi, President Director of Pupuk Indonesia, emphasized that this partnership marks a significant step towards advancing industrialization within Indonesia, particularly in the development of green ammonia, which is expected to have a positive impact on the national economy.
“Specifically, the development of green ammonia is considered to positively impact the national economy,” Rahmad said on Wednesday, August 21, 2024.
Under Project GAIA, Pupuk Indonesia will produce green ammonia using an ammonia plant designed and built by TOYO in the 2000s.
This green ammonia will be supplied to ITOCHU as a raw material for marine fuel, creating a comprehensive value chain.
“This initiative will be the first of its kind in Indonesia and globally,” he added.
The primary goal of Project GAIA is to produce green ammonia at the PIM-2 fertilizer plant owned by Pupuk Iskandar Muda, located in the Special Economic Zone (KEK) Arun Lhokseumawe, Aceh.
The production of green ammonia will be supported by the installation of an electrolyzer at the fertilizer plant.
The electrolyzer technology is designed to extract hydrogen from water molecules using renewable energy sources for the electrolysis process.
The hydrogen produced is then reacted with nitrogen to form ammonia. This process does not produce any carbon emissions, making it a true green ammonia.
This initiative is also planned to be expanded to other ammonia plants under the Pupuk Indonesia Group and ammonia plants in other countries in the future.
Additionally, the project has been selected by Japan’s Ministry of Economy, Trade, and Industry (METI) as one of the projects under the Global South Future-Oriented Co-Creation Business Expense Subsidy.
“This program provides subsidies to 13 future-oriented projects in ASEAN,” Rahmad said.
