Jakarta. State-owned fertilizer company Pupuk Indonesia is currently building what it claims to be the world’s first hybrid green ammonia production facility. 

Pupuk Indonesia talked of this project at the climate summit COP29 in Azerbaijan. Pupuk Indonesia’s Aceh-based subsidiary Pupuk Iskandar Muda is in charge of the project that is also known as the Green Ammonia Initiative from Aceh (GAIA). 

The plant will not only produce ammonia from natural gas. It will also make green ammonia from hydrogen through the electrolysis of water.

"The GAIA Project will not only increase the efficiency of our existing assets. But we are also trying to create sustainable solutions that have a positive impact on the environment, the economy, and even support food and energy security,” Pupuk Indonesia’s president director Rahmad Pribadi was quoted as saying in a press statement. 

With consistent production, green ammonia can become a highly valuable commodity that Indonesia can take advantage of. The green ammonia production can also help Indonesia achieve its target of reaching net zero emissions by 2060.

Pupuk Indonesia also announced that it has partnered with 2 Japanese companies, Toyo Engineering Corporation and ITOCHU Corporation, in a joint venture that supports the value chain of green ammonia production and distribution.

By combining expertise from various countries, the GAIA Project is expected to be a clean energy solution that has a positive impact globally and strengthens Indonesia's position on the global energy transition. 

In the GAIA project ecosystem, the state electricity utility firm PLN will power the green hydrogen production with renewable energy. The design-build technology or energy performance certificate (EPC) will come from Toyo. ITOCHU will support the marine bunkering supply chain. The GAIA Project is also intended to accelerate the development of Indonesian downstream chemical industries with an approach that supports sustainability through renewable energy. This project will make Indonesia a pioneer in producing hybrid green ammonia, which is not only useful for domestic needs but also as a high-value commodity for export. In the future, this business model can be replicated in other ammonia production facilities in Indonesia, even internationally.

Economic and Environmental Benefits of  GAIA Project
Aside from attracting investment, the project is set to create new jobs in the green energy sector. In the long run, the project can expand to other ammonia production facilities in Indonesia and even abroad. This expansion will guarantee Indonesia’s supply of environmentally friendly raw materials for fertilizers. Fertilizers are key to agricultural productivity, thus supporting the fulfillment of domestic and regional food needs. 

The Arun Special Economic Zone (SEZ) in Lhokseumawe -- which is the location of the GAIA Project -- has provided the necessary infrastructure to support green investment. The SEZ status also helps accelerate the realization of this project’s economic potential. 

Pupuk Indonesia says it boasts over 50 years of experience in producing, storing, and distributing ammonia. This puts the company in a strategic position to make Indonesia a global player in green ammonia. According to Pupuk Indonesia, green ammonia is not the only key in fertilizer and food production. Its development can also support the global maritime sector, which is projected to adopt green ammonia as an environmentally friendly fuel by 2050. 

"Through the GAIA Project, Pupuk Indonesia is at the forefront of low-carbon technology innovation. This initiative is not only a milestone for the decarbonization of the national fertilizer industry, but also has the potential to be a model for other countries that wish to develop green ammonia," Rahmad said.