Toyo Engineering Corporation (Tokyo) has entered into a Shareholder Agreement (SHA) with Pupuk Indonesia Holding Company (PIHC), a state-owned Indonesian fertilizer firm, and ITOCHU Corporation (Tokyo) to form a joint venture. The partnership aims to produce green ammonia by integrating an electrolyzer into the existing ammonia plant operated by Pupuk Iskandar Muda (PIM), a PIHC subsidiary, using green hydrogen from renewable energy. The SHA signing was officially announced on November 15, 2024, during the Japan Pavilion event at the United Nations Climate Change Conference (COP29) in Baku, Azerbaijan.
The project is focused on producing green ammonia at an existing plant, originally designed and built by Toyo in the 2000s. Currently owned and operated by PIM in Aceh’s Special Economic Zone (SEZ), the plant will supply green ammonia to Itochu for marine fuel, creating a complete value chain. This initiative represents Indonesia’s first and the world’s first commercial-scale production of green ammonia for marine fuel, utilizing a portion of the existing plant’s production capacity.
The initiative seeks to extend this model to other existing plants under PIHC in the future. Furthermore, Japan’s Ministry of Economy, Trade and Industry (METI) has selected the GAIA project for inclusion in its “Global South Future-Oriented Co-Creation Business Expense Subsidy” program.
The Front End Engineering Design (FEED) process began in August 2024 as part of the collaborative development. The final investment decision (FID) is scheduled for the first half of 2025, with the Commercial Operation Date (COD) aimed for 2027.
(Source: Chemical Engineering)