Japanese partners study Indonesian blue ammonia output

Japanese trading house Mitsubishi and state-owned energy agency Jogmec are considering possible blue ammonia output with Indonesian producer PAU.

Blue ammonia is produced from fossil fuels, such as natural gas, with the carbon dioxide (CO2) generated dealt with through carbon capture and storage (CCS).

Mitsubishi and Jogmec said today they have agreed with PAU and Indonesia's national Bandung Institute of Technology, which has expertise in CCS, to carry out a CCS feasibility study. The study is planned for near the PAU plant and the 2mn t/yr Donggi-Senoro LNG, both in central Sulawesi.

The partners will proceed with working out detailed plans for the study, including data collection on target carbon storage formations, simulations and evaluations. Mitsubishi Gas Chemical, which also participates in PAU, has also expressed interest in co-operating in the study.

Mitsubishi and its Indonesian partner SEP started production at the 660,000 t/yr PAU joint-venture ammonia plant in 2018. The plant uses natural gas feedstock from the nearby Senoro and Toili fields, in which Mitsubishi partners South Korea's state-owned Kogas.

Japan is targeting to expand the use of ammonia as a fuel as part of efforts to achieve its 2050 decarbonisation goal, with imports expected to start as early as 2025 initially for co-firing at coal-fired power plants. The government plans to provide full support for Japanese investment in developing ammonia supply chains, as well as overseas CCS projects, to meet growing demand for fuel-use ammonia eventually with blue and green ammonia. Green ammonia is produced from renewable sources without any carbon emissions.

By Rieko Suda