Toyo Engineering Corp. (Tokyo) has signed a Joint Development Agreement (JDA) with Pupuk Indonesia Holding Company (PIHC), a state-owned fertilizer company in Indonesia, and Itochu Corp. Corporation (Tokyo). The agreement focuses on producing green ammonia by installing an electrolyzer at the existing ammonia plant owned by Pupuk Iskandar Muda “PIM), a subsidiary of PIHC, and supplying green hydrogen derived from renewable energy sources. The signing of this JDA was announced at the 2nd Ministerial Meeting of the Asian Zero Emission Community (AZEC) held in Jakarta on August 21, 2024.
The project aims to produce green ammonia at the existing plant, which Toyo designed and built in the 2000s. This plant is currently owned and operated by PIM in the Special Economic Zone (SEZ) of Aceh. ITOCHU will procure the green ammonia as marine fuel, thereby establishing a comprehensive value chain. This initiative marks Indonesia’s first and the world’s first commercial-scaled green ammonia production for marine fuel by utilizing part of the production capacity of the existing plant.
The initiative also aims to expand this mechanism to other existing plants under PIHC in the future. In addition, the GAIA project has been selected by Japan’s Ministry of Economy, Trade and Industry (METI) as a subsidized project for the “Global South Future-Oriented Co-Creation Business Expense Subsidy”.
As part of this joint development, the Front End Engineering Design (FEED) will commence in August 2024. Simultaneously, the three companies will establish a joint venture company (JVC) in 2024, with a final investment decision (FID) targeted for the first half of 2025 and the Commercial Operation Date (COD) targeted for 2027.