IHI Concludes Agreement to Study Green Ammonia Combustion at Indonesian Commercial Coal-Fired Power Plant
We, IHI Corporation (“IHI”), announce today that we have signed a memorandum of understanding ("MOU”) with PT PLN Indonesia Power, Indonesia's state-owned electricity company, and PT Pupuk Kujang, Indonesia’s state-owned fertilizer company. The MOU encompasses studying the feasibility of transitioning from coal to green ammonia, a clean energy source, at the Labuan coal fired Power Plant which is owned by the PLN Group (generation output: 300,000 kilowatts). The announcement of this MOU coincided with a second Ministerial Meeting of the Asia Zero Emissions Community (AZEC) , hosted by Japan’s Ministry of Economy, Trade and Industry(METI).
IHI, PT PLN Indonesia Power, and PT Pupuk Kujang will evaluate the technical and economic feasibility of the entire value chain, from the production of green ammonia to its supply to the Labuan facility and the conversion of the power generation facility's fuel to green ammonia. IHI will primarily oversee technical studies related to the demonstration of ammonia combustion, such as modifications to the power plant, while PT PLN Indonesia Power will provide the power plant, operating personnel, green hydrogen as raw material for green ammonia, and PT Pupuk Kujang will produce and supply the green ammonia.
The Indonesian government aims to eliminate greenhouse gas emissions by 2060. One key challenge is to lower carbon dioxide emissions from coal-fired power plants and Indonesia is accordingly looking into tapping such carbon-neutral fuels as ammonia and hydrogen. In 2022, IHI successfully conducted an ammonia combustion demonstration test at a coal-fired facility in Indonesia. IHI will build on this success and undertake further studies in the belief that these studies can help coal-fired sites to lower their carbon dioxide emissions, bringing Indonesia closer to its net-zero goal.
Through this initiative, IHI seeks to showcase carbon neutrality solutions in ASEAN countries and contribute to sustainable energy transitions worldwide. Additionally, by demonstrating a model of fuel ammonia utilization, IHI will contribute to the early social implementation of carbon-neutral fuels and help reduce environmental footprints by providing high-quality infrastructure.
Related press release
March 7, 2023 – IHI Looking to Produce and Green Ammonia and Run Co-firing Business in Indonesia
https://www.ihi.co.jp/en/all_news/2022/resources_energy_environment/1198208_3488.html