Indonesian fertilizer maker eyes 'clean' ammonia for East Asia

Low-carbon energy plans in Japan, South Korea expected to boost demand

20240605 Pupuk president

Rahmad Pribadi, head of Pupuk Indonesia, explains his company's efforts to expand its chemical business. (Photo by Erwida Maulia)

ERWIDA MAULIA, Nikkei staff writer

JAKARTA -- State-owned Pupuk Indonesia, one of Asia's major fertilizer producers, wants to accelerate its "clean ammonia" development projects as it hopes to tap into demand for the chemical, which is being touted as a future fuel source in countries such as Japan and South Korea.

Ammonia is typically made using fossil fuels, mostly as an input for nitrogen-based fertilizers. Pupuk accounts for 5% of global production capacity, according to the company. Pupuk is keen to develop clean ammonia, both "blue" ammonia derived from fossil fuels but with carbon capture and storage added to the production process, and "green" ammonia produced from hydrogen obtained through water electrolysis powered by renewable energy.

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