DUBAI – The President Director of PT Pupuk Indonesia (Persero), Rahmad Pribadi, (second from the left on this article picture) supports the global commitment at the 28th Conference of Parties (COP28) of the United Nations to reduce global carbon emissions. Rahmad conveyed this during a discussion session on Clean Ammonia at the Indonesia Pavilion in Dubai on Tuesday (December 15, 2023).

During the event, Rahmad revealed that Pupuk Indonesia is currently a major player in ammonia production in the Asia-Pacific, Middle East, and North Africa regions. Pupuk Indonesia controls four percent of global ammonia production, equivalent to about seven million tons per year, all of which are grey ammonia, still emitting carbon.

"Therefore, our current aspiration is to decarbonize existing business and, at the same time, develop new business, namely clean ammonia," explained Rahmad.

The primary goal of developing clean ammonia, he continued, is to achieve a low-carbon fertilizer and chemical industry. In line with global commitments, Rahmad mentioned that Pupuk Indonesia has successfully reduced carbon emissions significantly, by 1.55 million tons, surpassing the target of 1.21 million tons in 2023.

"This reduction comes from optimizing and efficiently consuming energy, utilizing renewable energy, co-firing biomass, nature-based solutions, and revitalizing several fertilizer plants," added Rahmad.

Aligned with this initiative, Pupuk Indonesia will move towards developing lower and even zero carbon emission ammonia in the future. Clean ammonia will consist of blue ammonia and green ammonia. In the long term, they will also develop green methanol.

According to him, the development of clean ammonia aligns with Indonesia's potential as a hub for Carbon Capture Storage (CCS). The implementation of CCS technology in Indonesia has the potential to capture 4.3 gigatons of carbon. Pupuk Indonesia is also involved in the development of CCS technology in Aceh and the Masela Abadi Field.

CCS itself is a technology capable of capturing carbon emissions from the air and storing them in a storage facility. The carbon emissions are then directed and injected into old oil and gas wells to enhance their production.

In addition to CCS technology, the development of clean ammonia in Indonesia is also supported by a renewable energy potential of 3,700 gigawatts, with the largest portion coming from solar energy. This clean energy is the main source for producing green hydrogen, which can then be converted by Pupuk Indonesia into green ammonia.

"Pupuk Indonesia has sufficient resources for the development of clean ammonia, starting from existing facilities for converting green hydrogen

into green ammonia, expertise and knowledge in ammonia production, experience in managing and distributing ammonia, and having a Green Industry Zone in Lhokseumawe, Aceh," Rahmad explained.

With this potential and expertise, he continued, Pupuk Indonesia has prepared a roadmap for the development of clean ammonia. In 2023-2025, Pupuk Indonesia will plan and make the Final Investment Decision (FID) for the development of blue ammonia and green ammonia. In 2026, they will commence the construction of a clean ammonia plant in East Java and Aceh. In 2028, they will start operating a small-scale green ammonia plant. And in 2030, they will begin operating a blue ammonia plant and utilize CCS technology.

The development of clean ammonia will expand further in 2050. At this point, Pupuk Indonesia is expected to increase ammonia production from seven million tons per year in 2023 to 12.9 million tons per year in 2050.

According to Rahmad, the development of a supporting ecosystem for clean ammonia is crucial. Besides supporting the smooth supply of fertilizer raw materials, clean ammonia is also needed as a source of future clean energy. However, there are several challenges in its development, such as regulatory certainty, economic feasibility, technology, and supporting infrastructure.

"Therefore, we are ready to collaborate with various parties to develop clean ammonia in Indonesia. This includes collaboration for the development of affordable renewable energy, technology, CCS facilities, logistics, and collaboration with potential buyers," Rahmad concluded.