MHI commences feasibility studies on use of ammonia for power generation in Indonesia

Mitsubishi Heavy Industries Ltd (MHI), with support from its power solutions brand, Mitsubishi Power, has begun a feasibility study on the use of ammonia as fuel for power plants in Indonesia.

The two proposals to carry out this study were recently adopted by Japan's Ministry of Economy, Trade and Industry (METI), to uncover and leverage the advanced technologies and expertise of Japanese companies to meet new global demands for infrastructure and contribute to global socioeconomic development. This is part of efforts to support energy decarbonization in the country through the Asia Energy Transition Initiative (AETI).

MHI said these two studies will examine the feasibility of utilizing ammonia at the Suralaya coal-fired power station and at an existing natural gas-fired power station in the country, derived from the abundant oil and natural gas produced in Indonesia, with the goal of establishing an integrated ammonia value chain encompassing production, transport, fuel consumption, and CO2 storage.

The main objective of the Suralaya project is to calculate the economic efficiency of the envisioned process of transporting ammonia produced in Indonesia to the power station and consuming it as fuel for generating power. The project will be conducted jointly with Mitsubishi Corporation and Nippon Koei Co Ltd, with operations expected to begin around 2030.

The main objective of the Existing Natural Gas-fired Power Station Project is to calculate the economic efficiency of transporting ammonia and hydrogen produced in Indonesia to a nearby existing natural gas-fired power station as a fuel to generate power. The project will be conducted jointly with Tokyo Electric Power Services Co Ltd (TEPSCO), with operations expected to begin in the second half of this decade.

Both projects will examine the effectiveness of CO2 reductions throughout the value chain, with MHI focusing primarily on the outcome of introducing ammonia power generation technologies. In addition, MHI plans to conduct a feasibility study based on institutional support measures such as financial support from the Japanese government, and decarbonization efforts and carbon pricing by Indonesia. Through the implementation of these projects, MHI hopes to contribute to the expansion of energy infrastructure exports from Japan.

Indonesia has announced a policy of deriving 23% of its power supply from renewable energy by 2025, and 28% by 2035. MHI and Mitsubishi Power will make a concerted effort as a corporate group, working in cooperation with Indonesia's state-owned power company group and the Bandung Institute of Technology (ITB), to support approaches that help the country achieve its targets.

© JCN Newswire