Fertiliser Giant Pupuk Indonesia Ties Up with Japan for Clean Energy

The largest fertiliser manufacturer in Asia, PT Pupuk Indonesia (Persero) has signed a Memorandum of Understanding (MoU) with Japan Bank for International Corporations (JBIC), a state-owned financial institution for the development of a future clean energy ecosystem through clean ammonia and hydrogen.

Vice President Director of Pupuk Indonesia, Nugroho Christijanto, said, “The company has cooperation in the development of clean ammonia with a number of Japanese companies. Because Japan is aiming to utilize clean ammonia as carbon-free fuel for its decarbonisation. 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.”

Nugroho also hoped to share JBIC’s 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,” he said.

Six Japanese companies are collaborating with Pupuk Indonesia in the development of clean ammonia, namely, Mitsui, Toyo Engineering, Mitsubishi Corporation, INPEX, Itochu Corporation and IHI Corporation. Pupuk Indonesia also has a similar collaboration with Saudi based ACWA Power and with state-owned companies such as Pertamina and PLN.

The initiative is a step towards supporting 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.

JBIC’s Managing Executive Officer, Inaba Yutaka, said, “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.”

He further added, “Through this MoU, JBIC has a goal to accelerate the development of clean ammonia and hydrogen supply chains.” He hoped that 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 public 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 decarbonisation,” he pointed out.