Toyo Engineering, PIHC and Itochu Sign Shareholders Agreement to Establish Joint Venture Company for Green Ammonia Project “GAIA” in Aceh, Indonesia.
Toyo Engineering Corporation (President and CEO: Eiji Hosoi, hereinafter referred to as “TOYO”), Pupuk Indonesia Holding Company (President Director Rahmad Pribadi, hereinafter referred to as “PIHC”), the country’s public fertilizer company, and ITOCHU Corporation (President and COO: Keita Ishii, hereinafter referred to as “ITOCHU”) have signed a shareholders agreement (SHA) in order to establish a joint venture company in the Republic of Indonesia to install a water electrolysis system at an existing ammonia plant owned by Pupuk Iskandar Muda (hereinafter referred to as “PIM”), a subsidiary of PIHC, and to supply green hydrogen derived from renewable energy to produce green ammonia in the Republic of Indonesia.
In connection with this, the signing of the SHA was announced at the Japan Pavilion at the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) held in Baku, Azerbaijan on November 15, 2024.
In this project, green ammonia will be produced by utilizing part of the production capacity of an existing plant that was designed and constructed by TOYO in the 2000s and owned and operated by PIM in the special economic zone of Aceh Province. This green ammonia will be procured by ITOCHU as marine fuel, aiming to build a value chain. In the future, we are considering horizontally expanding the same system to other existing plants under PIHC. This will be the world’s first commercial-scale green ammonia production effort using an existing ammonia plant for marine fuel use. This project has been selected as a target project for the Ministry of Economy, Trade and Industry’s “Global South Future-oriented Co-creation Project Subsidy.”
Fundamental engineering (FEED) work began in August 2024, and based on this SHA, the three companies will establish a joint venture company within fiscal year 2024, aiming to make a final investment decision (FID) in the first half of 2025 and start production around 2027.
TOYO is leveraging its track record in constructing ammonia plants in Indonesia and around the world to work on the production and creation of green ammonia derived from renewable energy. Through this project, TOYO will contribute to the realization of a more sustainable society.
