Toyo Engineering Corporation (President and CEO: Eiji Hosoi, hereinafter referred to as “TOYO”) has signed a Joint Development Agreement (JDA) with Indonesia’s public fertilizer company, Pupuk Indonesia Holding Company (President Director Rahmad Pribadi, hereinafter referred to as “PIHC”), and ITOCHU Corporation (President and COO: Keita Ishii, hereinafter referred to as “ITOCHU”) in the Republic of Indonesia for a project 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 produce green ammonia by supplying green hydrogen derived from renewable energy.
In conjunction with this, the signing of the JDA was announced at the Second Asia Zero Emission Community (AZEC) Ministerial Meeting held in Jakarta on August 21, 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 in 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 the umbrella of PIHC. This will be the world’s first commercial-scale green ammonia production initiative using an existing ammonia plant for marine fuel use.
This project has been selected as a target for the Ministry of Economy, Trade and Industry’s “Global South Future-Oriented Co-Creation Project Subsidy.”
As part of this joint development, basic engineering (FEED) will begin in August 2024, and in parallel, the three companies will establish a joint venture company within 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.
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