Mitsubishi Heavy Industries, Ltd. Global Website | MHI launches feasibility studies on using ammonia for power generation in Indonesia –

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Tokyo, June 7, 2022 – Mitsubishi Heavy Industries, Ltd. (MHI), with the support of its energy solutions brand, Mitsubishi Power, has launched a feasibility study on the use of ammonia as a fuel for power plants in Indonesia. The two proposals to carry out this study were recently adopted by the Japanese Ministry of Economy, Trade and Industry (METI), in order to discover and take advantage of cutting-edge technologies and the expertise of Japanese companies to meet new global infrastructure demands and contribute to global socio-economic development. This is part of efforts to support energy decarbonization in the country through the Asia Energy Transition Initiative (AETI) (Note1).

These two studies will examine the feasibility of using ammonia (Note2) at Suralaya coal-fired power plant and an existing natural gas-fired power plant in the country, derived from the abundance of oil and natural gas produced in Indonesia, with the aim of establishing an integrated ammonia value chain encompassing production, transportation, fuel consumption and CO2 storage.

The two proposals selected by METI for its “Feasibility Studies for the Overseas Deployment of High-Quality Energy Infrastructure (Projects to Study the Promotion of Overseas Infrastructure Development by Japanese Companies)” are the “Feasibility Survey of Ammonia Mixed Fuel Combustion at Suralaya Power Plant in Indonesia and Assessment of the Overall Value Chain” (the “Suralaya Project”), and “Survey on the Feasibility of Retrofitting of an existing natural gas-fired power plant in Indonesia to introduce ammonia-based power generation and the establishment of a value chain” in an existing natural gas-fired power plant (the “Power Plant Project to natural gas”). Both proposals will examine the potential reduction of CO2 emissions2 resulting from the production of energy and its effects. The potential global impact and high degree of usefulness and innovation of these feasibility studies are considered important for policies involving the Japanese government.

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

The main objective of the existing natural gas power plant project is to calculate the economic efficiency of transporting ammonia and hydrogen produced in Indonesia to an existing natural gas power plant nearby as fuel to produce electricity. The project will be carried out 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 primarily focusing on the results 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, decarbonization efforts and carbon pricing by Indonesia. Through the implementation of these projects, MHI hopes to contribute to the expansion of Japan’s energy infrastructure exports.

Indonesia has announced a policy to get 23% of its electricity supply from renewables by 2025 and 28% by 2035. MHI and Mitsubishi Power will make a concerted effort as a group of companies, working in cooperation with the group of Indonesian state-owned electricity companies. and the Bandung Institute of Technology (ITB), to support approaches that help the country achieve its goals.

Going forward, with the encouragement of the adoption of these feasibility studies by METI, MHI and Mitsubishi Power will contribute to Indonesia’s continued decarbonization and provide impetus for the global rollout of the net-zero energy transition policy. of the company through the projects.

  • 1The Asia Energy Transition Initiative (AETI) was announced by the Government of Japan in May 2021 and aims to promote carbon neutrality in Asia while simultaneously achieving sustainable economic growth.
  • 2Blue hydrogen, which has no greenhouse effect, is obtained by splitting natural gas or similar material into hydrogen (H2) and carbon dioxide (CO2), either by steam methane reforming (SMR) or by auto thermal reforming (ATR), with CO2 captured and stored rather than released into the atmosphere. Combining this with nitrogen (N2) produces blue ammonia (NH3), which also has no greenhouse effect. Blue ammonia will be used in both projects.


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