Toyo Engineering Corp. (Tokyo) has signed a Shareholder Agreement (SHA) to establish Joint Venture Company with Pupuk Indonesia Holding Co. (PIHC), a state-owned fertilizer company in the Republic of Indonesia, and ITOCHU Corp. (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 SHA was announced at the Japan Pavilion of the 2024 United Nations Climate Change Conference (COP29) held in Baku, Azerbaijan on November 15, 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 model 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) has already commenced from August 2024. Based on the SHA the three companies will establish a Joint Venture Company in FY2024, with a final investment decision (FID) targeted for the first half of 2025 and the Commercial Operation Date (COD) targeted for 2027.
Toyo has been leveraging its extensive experience in ammonia plant construction in Indonesia and globally to advance the production and business development of green ammonia derived from renewable energy. Through this project, Toyo will continue to contribute to the realization of a sustainable society.