PT Pupuk Indonesia Holding Co. (Perseo) has signed a Joint Development Agreement (JDA) with Toyo Engineering Corp. and ITOCHU Corp. to develop and utilize green ammonia in Indonesia. The JDA is known as Green Ammonia Initiative from Aceh (Project GAIA).
The project will aim to produce green ammonia by leveraging part of the capacity from the existing ammonia plant built by Toyo in the 2000s that is currently operating in the Aceh Province’s special economic zone. Itochu will then procure the green ammonia for use as a marine fuel.
Front End Engineering and Design on the project is expected to begin this month, with Toyo, ITOCHU, and PT Pupuk Indonesia establishing a joint venture to oversee the project. The Final Investment Decision (FID) is expected in the first half of 2025 with operations commencing in 2027.
State-owned PT Pupuk Indonesia announced that it will invest more than $6 billion over the next five years to boost domestic fertilizer supply to improve the country’s food security (GM March 22, p. 31). The company has been exploring a methanol plant in Aceh, the same region in which the JDA with ITOCHU and Toyo is developing the green ammonia facility.