IHI Looking to Produce and Green Ammonia and Run Co-firing Business in Indonesia
IHI Corporation announced today that it and Indonesian state-owned fertilizer company PT Pupuk Indonesia (Persero) have signed a memorandum of understanding to explore the feasibility of producing and selling green ammonia derived from renewable energy sources in Indonesia. They will also assess the feasibility of co-firing ammonia in power boilers. The announcement is in keeping with efforts of the Asia Zero Emissions Community’s public-private investment forum, or AZEC. Japan’s Ministry of Economy, Trade and Industry set that body up to support and coordinate policies to accelerate clean energy projects, energy transition financing, and lower costs for new technology implementation.
Fertilizer plant planned for collaboration with Pupuk and IHI
Under this initiative, Pupuk’s fertilizer plant in East Java would use geothermal power to produce green ammonia and market it in Indonesia and overseas. There would additionally be a feasibility assessment of ammonia co-firing at generator boilers at the same site.
IHI would mainly handle technical studies and feasibility assessments. Pupuk would look after renewable energy supply and demand studies. After the feasibility work and pilot ammonia co-firing in the year ending March 2024, constructing and running a commercial plant several years later.
The Indonesian government aims to eliminate greenhouse gas emissions by 2060. It is accordingly looking into tapping such carbon-neutral fuels as ammonia and hydrogen. As Indonesia's biggest state-owned fertilizer manufacturer, Pupuk produces massive quantities of fossil-fuel-derived ammonia derived. It wants to make renewables-derived ammonia as soon as possible.
At AZEC, which debuted this year, IHI President and Chief Executive Officer Hiroshi Ide outlined the company’s efforts to establish a fuel ammonia supply chain that would help Indonesia become carbon neutral. AZEC encourages nations across Asia to formulate policies that balance decarbonization policies and economic growth in line with regional realities. Through its studies, IHI will present a model for green ammonia in Indonesia and help Japan and other countries to swiftly commercialize green ammonia and decarbonize.