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Toyo, Pupuk, and Itochu Sign JDA for Green Ammonia Project in Indonesia
Toyo, Pupuk, and Itochu Sign JDA for Green Ammonia Project in Indonesia

Toyo, Pupuk, and Itochu Sign JDA for Green Ammonia Project in Indonesia

  • 22-Aug-2024 8:18 PM
  • Journalist: Jung Hoon

Toyo Engineering Corporation (TOYO), led by President and CEO Eiji Hosoi, has announced a Joint Development Agreement (JDA) with Pupuk Indonesia Holding Company (PIHC), represented by President Director Rahmad Pribadi, and ITOCHU Corporation, with President and COO Keita Ishii. This strategic partnership focuses on the installation of a water electrolyzer at Pupuk Iskandar Muda’s (PIM) ammonia plant, which is operated by PIHC. The project aims to produce green ammonia by utilizing green hydrogen derived from renewable energy sources. The JDA was unveiled at the 2nd Ministerial Meeting of the Asian Zero Emission Community (AZEC) in Jakarta on August 21, 2024, highlighting a commitment to advancing sustainable energy solutions.

In this initiative, green ammonia will be produced by leveraging a portion of the capacity from an ammonia plant originally designed and built by TOYO in the 2000s, currently operated by PIM in Aceh Province’s special economic zone. ITOCHU will procure this green ammonia for use as marine fuel, establishing a new value chain. The project plans to potentially expand this system to other existing PIHC plants in the future, marking the world’s first commercial-scale green ammonia production from an existing ammonia facility for marine fuel. The project has been chosen for the Ministry of Economy, Trade and Industry’s “Global South Future-Oriented Co-Creation Project Subsidy.”

As part of this joint development, the Front End Engineering Design (FEED) phase will begin in August 2024. During the same period, Toyo Engineering Corporation, Pupuk Indonesia Holding Company, and ITOCHU Corporation will establish a joint venture company (JVC) to oversee the project. The aim is to finalize the investment decision (FID) in the first half of 2025. Following this, the project is slated to commence commercial operations (COD) in 2027, marking a significant milestone in green ammonia production.

Toyo Engineering Corporation (TOYO) is leveraging its extensive experience in ammonia plant construction both in Indonesia and globally to advance the production and business development of green ammonia from renewable energy sources. This initiative will further TOYO's commitment to sustainability by enhancing the green ammonia supply chain. Through this project, TOYO aims to significantly contribute to the transition towards a sustainable society, reinforcing its role as a key player in the global energy landscape.

The Joint Development Agreement between Toyo Engineering Corporation, Pupuk Indonesia Holding Company, and ITOCHU Corporation represents a significant step forward in sustainable ammonia production. By integrating green hydrogen into the ammonia production process, this collaboration highlights a strong commitment to advancing green technology and reducing environmental impact.

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