19-03-2021

MoU signed regarding carbon capture and storage for clean fuel ammonia production

Japan Oil, Gas and Metals National Corporation (JOGMEC), Mitsubishi Corporation (MC), Bandung Institute of Technology (ITB), a national university in the Republic of Indonesia, and PT Panca Amara Utama (PAU) have agreed to conduct a joint study on carbon capture and storage (CCS) and carbon dioxide utilization for clean fuel ammonia production in Central Sulawesi, the Republic of Indonesia. The four parties have signed a Memorandum of Understanding (MOU).

Ammonia is being used worldwide as raw material for fertilizers/plastics/chemicals. Expectation for ammonia to become a next generation clean energy source is growing because ammonia does not emit carbon dioxide when burnt; transportation methods have been established with existing infrastructure; and due to its high hydrogen content.

Under the MOU, the four parties will jointly conduct a CCS feasibility study near PAU's ammonia plant in Luwuk, Central Sulawesi, and the Donggi-Senoro LNG plant in the same province which is being led by MC as the largest shareholder. Mitsubishi Gas Chemical Company, Inc., which also indirectly invests in PAU together with Mitsubishi Corporation, has expressed its interests to cooperate in this joint study. Going forward, the companies concerned will formulate the necessary work processes including project composition; data accumulation of candidate storage formations; simulations; analysis and evaluations.

Through this joint study, we will make effort to contribute towards realizing a decarbonized society and securing stable energy supply for Japan by pursuing the feasibility of clean fuel ammonia production from utilization of existing ammonia plant and CCS treatment of carbon dioxide generated during the production phase.