PETALING JAYA: Petroliam Nasional Bhd (Petronas) through its wholly owned subsidiary, Gentari Hydrogen Sdn Bhd, has inked a memorandum of understanding (MoU) with Japan-based IHI Corp to evaluate the feasibility of leveraging the abundant solar resources of Malaysia to produce and sell green ammonia derived from renewables.
Under the MoU, the companies will consider a business model for ammonia production in Johor, a suitable site for solar power generation, where green ammonia will be produced, used locally for power generation and marine fuel supply as well as exported to the Japanese and Asian markets.
“In this study, IHI will fulfil 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 which runs until the beginning of 2023, the project aims to develop a commercial ammonia production plant to commence operations before 2030,” IHI said in a statement today.
At present, the group said, 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, the 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,” said IHI.
IHI Corp is a heavy-industry manufacturer working to create value for customers in four main areas—resource, energy and environment; social infrastructure and offshore facilities; industrial systems and general-purpose machinery; and aero engine, space and defense.
Gentari is a clean energy solutions entity tasked to independently pursue and deliver integrated sustainable energy solutions, as well as to capture opportunities in the energy transition. It offers lower carbon solutions through three initial core pillars – renewable energy, hydrogen and green mobility, forming a portfolio of solutions cutting across the electron value chain to help customers achieve net zero emissions.
In the long term, the company aims to be a full suite net zero solutions provider, creating greater value, connecting businesses and making the journey to net zero possible.