Indonesia, Japan to conduct CCS study for clean fuel ammonia production

Indonesia and Japan will collaborate on a study on carbon capture and storage (CCS) and utilization of carbon dioxide for producing clean fuel ammonia in Central Sulawesi, as per an announcement made in March 2021.

In this connection, a memorandum of understanding (MOU) has been signed by Japanese entities – Japan Oil, Gas and Metals National Corporation (JOGMEC), Mitsubishi Corporation (MC), and Indonesia’s Bandung Institute of Technology (ITB), and Panca Amara Utama (PAU).

According to the MOU, the four organisations will collaborate to undertake a CCS feasibility study near Panca Amara Utama ammonia plant in Luwuk and the Donggi-Senoro LNG plant, which is being led by Mitsubishi as the largest shareholder.

Mitsubishi Gas Chemical Company, an indirect investor in Panca Amara Utama, along with Mitsubishi, has expressed its willingness to cooperate in the joint CCS study.

Indonesia, Japan to conduct CCS study for clean fuel ammonia production. Photo courtesy of Mitsubishi Corporation.

The companies involved in the study will map the required work processes, which would include composition of projects, accumulation of data of candidate storage formations, simulations, analysis and evaluations.

According to the parties, there is a potential for ammonia to be used as a next generation clean energy source as it does not release carbon dioxide gas when burnt. Besides, its transportation methods have been established with existing infrastructure, and the gas has high hydrogen content.

Mitsubishi said that the joint carbon capture and storage study will enable it to contribute towards achieving a decarbonized society. It will also help secure a stable supply of energy for Japan by conducting the feasibility of clean fuel ammonia production by using existing ammonia plants and also CCS treatment of carbon dioxide produced during the production stage.