Indonesia to receive $25 million grant for green ammonia development

Indonesia to receive million grant for green ammonia development

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The new company will use technology developed by Toyo in the 21st century to produce green ammonia for marine fuel.

JAKARTA (ANTARA) – Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that Japan will provide a grant of US$25 million for the development of the national green ammonia industry.

According to a statement received on Monday (August 26), the grant will be provided to Pupuk Iskandar Muda (PIM), a subsidiary of state-owned fertilizer company Pupuk Indonesia in Aceh.

The company was established under the Aceh Green Ammonia Project (GAIA Project) jointly initiated by Indonesia’s Pupuk Company and Japan’s Itochu Corporation and Toyo Engineering Corporation. The three parties have agreed to establish a joint venture company.

Hartarto noted that the front-end engineering design for the PIM plant had started this month. The final investment decision will be made in early 2025, and the plant is expected to be in commercial operation in 2027.

Meanwhile, Investment Minister and Chairman of the Investment Coordinating Board (BKPM) Rossan Roslani stressed that investments in zero-emission projects are attractive to the international market.

“Therefore, we should actively encourage foreign investment because we have huge potential for green investment,” said Roslani.

In addition, Pupuk Indonesia president director Rahmad Pribadi explained that the new company will produce green ammonia for marine fuel using technology developed by Toyo in the 2000s. The green ammonia will then be supplied to Itochu, which will produce finished marine fuel.

He said the new company will help Pupuk Indonesia diversify its business in the green energy sector, in addition to advancing the transition to clean energy to achieve its 2060 net-zero emissions target.

Pribadi commented: “This collaboration will help Pupuk Indonesia diversify its business, not only by increasing food production through fertilizers, but also by helping the industry downstream and providing added value to the national economy.”

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