State power utility PT PLN, through its subholding PLN Indonesia Power (PLN IP), has struck a deal with State fertilizer company PT Pupuk Kujang and Japan’s company Ishikawajima-Harima Heavy Industries (IHI Corporation) for the development of green ammonia that will be used to replace the role of coal in Coal Fired Power Plant (PLTU).
The agreement was achieved during the signing of Memorandum of Understanding between PLN IP, PT Pupuk Kujang and IHI Corporation on Wednesday, August 21, 2024.
PLN President Director, Darmawan Prasodjo. said PLN is committed to innovate in order to reduce emission in the electricity sector, among others by using green ammonia at coal fired power plants.
“It is hoped that green ammonia can be a substitute to coal and will subsequently reduce emission. Moreover, it will be in line with the government’s objective of achieving net zero emission by 2060,” Darmawan said.
CEO of PLN IP Edwin Nugaraha said the use of green ammonia can reduce the use of coal as coal fired power plant’s primary energy. As a start, green ammonia will be used at Banten 2 Labuan Coal Fired Power Plant.
“Through this cooperation, PLN IP, IHI and Pupuk Kujang will study technical and economical aspects of green ammonia supply value chain until the burning application. IHI will handle the technical aspect in correlation with the demonstration of ammonia burning, while PLN IP will provide power plant and operational personnel and Pupuk Kujang will handle production and supply of green ammonia,” Edwin said.
“This collaboration is important in our efforts to switch to sustainable energy sources. Green ammonia has huge potential to reduce carbon footprints and support the future of clean energy in Indonesia,” he added.
CEO of Pupuk Kujang, Maryono, said that as green ammonia producer, Pupuk Kujang is enthusiastic to participate in the innovative study.
“The collaboration allows us to contribute to the sustainable energy solution to explore the potential of green ammonia that is in line with our commitment for sustainable environment,” Maryono said.
Associate Director of IHI Corporation, Shinichi Takano, welcomed the technological collaboration in energy transition, especially innovation in green ammonia.
“We are honored to cooperate with PLN Indonesia Power and Pupuk Kujang. Our ammonia technology can help transform energy in Indonesia and pave the way for greener future,” Takano said.
