IHI Corporation announced that it has concluded a memorandum of understanding with Gentari Hydrogen Sdn Bhd, a subsidiary of PETRONAS’ clean energy entity, to evaluate the feasibility of leveraging the abundant solar resources of Malaysia to produce and sell green ammonia derived from renewables.
Under the memorandum, IHI and Gentari will consider a business model for ammonia production in Johor, Malaysia, a suitable site for solar power generation, where green ammonia will be produced, used locally for power generation and marine fuel supply, and exported to the Japanese and Asian markets. In this study, IHI will fulfill the role of conducting technical studies and ammonia demand surveys for Japan, while Gentari handles the assessment of renewable energy supply and various facilities in Malaysia, as well as various market demand surveys. After conducting a feasibility study that runs until the beginning of 2023, the project aims to develop a commercial ammonia production plant to commence operations in 2026.
At present, commercially available ammonia derived from fossil fuels emits carbon dioxide during production, however, the application of green ammonia in end-use segments such as power generation, marine fuels, and raw materials for fertilizers could keep emissions of carbon dioxide throughout the supply chain at low levels. Furthermore, technologies for green ammonia production, storage, and transportation are already well-established and can accelerate market deployment.
Through this feasibility exploration, IHI and Gentari aim to demonstrate several ammonia application models in Malaysia and build a fuel ammonia supply chain to address the future increase of clean fuel demand. It will thereby help accelerate the adoption of fuel ammonia and contribute to improved sustainability.