By integrating water electrolysis, GAIA will enable the Pupuk Iskandar Muda (PIM) plants in Lhokseumawe, Aceh, to produce both conventional ammonia from natural gas and green ammonia from renewable hydrogen.

Natural gas is to be supplied by state oil and gas holding company PT Pertamina, while green hydrogen is to be supplied by state power company PT PLN. Ammonia is mainly used as a raw material for the production of nitrogen, phosphorus and potassium (NPK) and ammonium sulfate (ZA) fertilizers, as well as for petrochemicals and similar applications.

“GAIA is much more than just asset optimization. This is a bold step towards sustainability that balances environmental, economic and security needs for food and energy,” said Rahmad Pribadi, President Director of Pupuk Indonesia, during a panel discussion Monday at the Indonesian pavilion on the sidelines of COP29 in Baku.

PT Astra International Director Gita Tiffany Boer, PT Riau Andalan Pulp and Paper Director Sihol Aritonang, PT Medco Energi Internasional Director and Administrative Officer Amri Siahaan and PT Vale Indonesia President and CEO Febriany Eddy, joined Rahmad during the round table. The roundtable was moderated by Efransjah.

As the largest final fertilizer producer in the Asia-Pacific, Middle East and North Africa regions, Pupuk Indonesia produces 14.5 million tonnes of fertilizer, including 9.3 million tonnes of urea. In addition to fertilizers, the company produces a range of chemicals, including ammonia.

To produce and distribute green ammonia in Lhokseumawe, Pupuk Indonesia formed a joint venture with Japanese companies Toyo Engineering Corporation and ITOCHU Corporation. Toyo will provide engineering, procurement and construction (EPC) expertise, and ITOCHU will support the maritime bunkering supply chain.

The international partnership with Toyo and ITOCHU highlights Pupuk Indonesia’s commitment to food security and global climate action, company representatives say. By combining local knowledge and global expertise, GAIA seeks to make Indonesia an important player in the global food security and green energy landscape.

The GAIA development aims to optimize PIM’s fertilizer production facilities, which have for some time been suffering from dwindling natural gas supplies from the nearby Arun gas field. The government imported liquefied natural gas (LNG) from Bontang in East Kalimantan and Tangguh in West Papua to revive PIM’s fertilizer production facilities. Through GAIA, PIM is expected to become the petrochemical cluster of Pupuk Indonesia in the western part of Indonesia.

GAIA also aims to drive downstream growth in Indonesia’s chemical industry. As a crucial ingredient for fertilizers and industrial chemicals, green ammonia, produced using renewable energy and low-carbon technologies, strengthens the entire chemical supply chain. The hybrid model can be replicated in other ammonia facilities in Indonesia and internationally.

“Currently, most ammonia is used for petrochemicals, fertilizers and similar applications. However, in the future, ammonia will serve as a transition fuel in its own right, which is important because it is carbon-free. Over the next decade and beyond, the demand for ammonia will increase in the energy sector,” Rahmad said.

Pupuk Indonesia will use two main methods to produce clean ammonia, namely blue ammonia, which involves the capture and storage of carbon emissions from traditional ammonia production, and green ammonia, which uses water and renewable energies to directly create ammonia.

To continue this effort, the company has a clean ammonia roadmap. The aim is that by 2030, Pupuk Indonesia will produce hybrid ammonia using green hydrogen in Lhokseumawe through its subsidiary PIM. By 2035, the company plans to introduce blue ammonia on a larger scale, increasing its overall ammonia capacity from 7 million tonnes to 12.18 million tonnes per year, with the majority coming from clean ammonia.

Additionally, GAIA provides a multitude of economic and environmental benefits to Indonesia. By stimulating investment and job creation, this project will contribute to the country’s economic prosperity. The GAIA model could expand to other ammonia facilities in Indonesia, boosting domestic production.

Located in the Arun Special Economic Zone (SEZ) in Lhokseumawe, Aceh, GAIA leverages existing infrastructure to drive green investment and economic growth. With over 50 years of experience, Pupuk Indonesia seeks to make the country a global leader in green ammonia. This clean fuel has the potential to revolutionize the global maritime sector by 2050, reducing carbon emissions and promoting sustainable development.

“As we advance the GAIA project, Pupuk Indonesia stands at the forefront of low-carbon innovation, setting a plan to decarbonize Indonesia’s fertilizer industry and establishing a replicable model for others countries looking to develop green ammonia,” said Rahmad.