Precise Investors

Monday, July 4, 2022
Latest News

Mitsubishi plans ammonia fuel project in Indonesia


A PAU factory for ammonia used in feed and chemical materials will be repurposed to make the compound as a fuel source for cofiring coal power plants

Mitsubishi Corp. plans to begin manufacturing ammonia as a fuel source in Indonesia using an emissions-reducing process within five years and ship it to Japan.

The Japanese trading house has teamed on a study of carbon capture and storage technologies with state-backed Japan Oil, Gas and Metals National Corp., Indonesia’s Bandung Institute of Technology and Panca Amara Utama, an Indonesian ammonia producer partly owned by Mitsubishi.

A PAU factory for ammonia used in feed and chemical materials will be repurposed to make the compound as a fuel source for cofiring coal power plants.

At this factory, carbon dioxide to be generated during ammonia production will be sent through an underground pipeline. The project partners are exploring a storage technology, possibly using a depleted gas field or an aquifer — a layer of water-bearing rock. Construction costs have yet to be determined.

Ammonia has drawn interest as a fuel because it does not emit carbon dioxide when burned and thus offers an alternative to coal for power generation. But the drawback has been large-scale emissions of the greenhouse gas from ammonia’s production.

The PAU plant will have an annual capacity of up to 700,000 tons, nearly one-quarter of the 3 million tons of ammonia that Japan wants to start using as fuel by 2030. Japan has pledged to achieve carbon neutrality by 2050.

In Japan, ammonia is nearly twice as expensive as natural gas per thermal unit. But ammonia-coal cofiring can be introduced at existing coal-fired power plants without major renovations.

Mitsubishi is also testing ammonia fuel with a carbon-capture technology in Saudi Arabia, a project which includes Saudi Aramco as one of the partners.


The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply