Indonesian State-owned fertilizer holding company PT Pupuk Indonesia unveiled the groundbreaking Green Ammonia Initiative from Aceh (GAIA), the world’s first hybrid ammonia project, during the UN Climate Change Summit (COP29) in Baku, Azerbaijan, on Tuesday, November 12, 2024.
CEO of PT Pupuk Indonesia, Rahmad Pribadi, highlighted that GAIA will leverage the ammonia production capabilities of PT Pupuk Iskandar Muda (PIM) in Aceh, a subsidiary of PT Pupuk Indonesia, combining traditional natural gas-based ammonia with green ammonia derived from hydrogen produced through water electrolysis.
“The GAIA Project is not only about optimizing existing assets but also about innovation to create sustainable solutions that positively impact the environment, economy, and support both food and energy security,” Rahmad said, on Tuesday, November 12, 2024.
He cited that this pioneering effort aims to support Indonesia’s green energy transition and aligns with the national Net Zero Emission (NZE) goal for 2060.
The global demand for green ammonia is rising, positioning it as a valuable commodity. If produced at scale, Indonesia has the potential to establish itself as a major player in this strategic market.
To advance this vision, Pupuk Indonesia has partnered with Japan-based Toyo Engineering Corporation and ITOCHU Corporation.
This joint venture strengthens the green ammonia supply chain, positioning Indonesia on the world map for green energy transitions.
The GAIA Project ecosystem is supported by renewable energy from Indonesia’s national electricity provider, PLN, engineering and technology from Toyo, and shipping supply chain logistics from ITOCHU.
This comprehensive approach supports the sustainable transformation of Indonesia’s chemical industry through renewable energy.
“This business model could be replicated across other ammonia production facilities in Indonesia and internationally, fostering sustainable industry development through green energy,” Rahmad said.
The project is expected to contribute significantly to Indonesia’s economy, attracting investment and creating new jobs within the green energy sector.
Located in the Arun Special Economic Zone in Lhokseumawe, Aceh province, the GAIA Project benefits from infrastructure that supports green investment, enhancing economic growth prospects and positioning Indonesia as a green innovation leader.
Rahmad emphasized that GAIA will also secure a sustainable supply of eco-friendly fertilizer raw materials and drive Pupuk Indonesia’s leadership in low-carbon technologies.
“This initiative represents a significant milestone in decarbonizing the national fertilizer industry, potentially serving as a model for other countries pursuing green ammonia development,” he concluded.
