Pupuk Indonesia collaborates with JBIC to advance clean hydrogen and ammonia sectors

PT Pupuk Indonesia (Persero) is getting serious about supporting the development of a future clean energy ecosystem through clean ammonia and hydrogen.

This was realized through the signing of a Memorandum of Understanding (MoU) with the Japan Bank for International Corporations (JBIC), a Japanese state-owned company.

Nugroho Christijanto said that the company has cooperation in the development of clean ammonia with a number of Japanese companies. Because Japan aims to use clean ammonia as a clean energy source in a decarbonization effort.

“Pupuk Indonesia and JBIC agreed to exchange information regarding the potential for cooperation between Pupuk Indonesia and a number of Japanese companies in the supply chain sector for ammonia, hydrogen and renewable energy,” said Nugroho.

In this collaboration, continued Nugroho, JBIC will also share experiences and information about its range of financial products. This includes exploring the possibility that JBIC will provide financial support for potential projects between Pupuk Indonesia and a number of Japanese companies.

Until now, there are at least six Japanese companies collaborating with Pupuk Indonesia in the development of clean ammonia. The six companies are Mitsui, Toyo Engineering, Mitsubishi Corporation, INPEX, Itochu Corporation, and IHI Corporation. In addition, Pupuk Indonesia has a similar collaboration with ACWA Power, a company from Saudi Arabia, to state-owned companies such as Pertamina and PLN.

The development of clean ammonia itself is part of Pupuk Indonesia’s decarbonization roadmap. Aside from being an alternative future energy, ammonia is also a medium for distributing hydrogen as a future energy source. This is also the company’s effort to support the target of reducing carbon emissions or Net Zero Emissions (NZE) launched by the Indonesian government.

“Pupuk Indonesia currently has an ammonia production capacity of seven million tonnes per year with complete ammonia storage and distribution facilities and has more than 50 years of experience. With these capabilities, we want to become a major global player,” said Nugroho.

Meanwhile, JBIC’s Managing Executive Officer, Inaba Yutaka, stated that this MoU would promote cooperation in a number of sectors that use ammonia and hydrogen as energy sources. This is because Pupuk Indonesia has a partnership with a Japanese company in the field of clean ammonia for future export needs.

Through this MoU, Inaba said that JBIC has a goal to accelerate the development of clean ammonia and hydrogen supply chains. According to him, the signing of this MoU will also support a number of initiatives, including the Asia Zero Emissions Community (AZEC), as well as secure the production and supply chain of ammonia and hydrogen for Japan.

“As a Japanese financial institution, JBIC will continue to create business opportunities for Japanese companies, as well as help secure a stable supply of clean energy for Japan through strengthening cooperation with important partners in the field of decarbonization,” he explained.

Engr. Haseeb Ullah

Haseeb covers the global energy market for both conventional and modern energy resources. His expertise is on the global energy supply chain from generation to distribution and end-users. He has a Master degree in Engineering Management and a Bachelor of Science degree in Electrical Engineering.
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