KUALA LUMPUR (Dec 15): Petroliam Nasional Bhd’s (Petronas) subsidiary and clean energy entity Gentari Hydrogen Sdn Bhd has inked a memorandum of understanding with IHI Corporation to evaluate the feasibility of using solar energy producing green ammonia derived from renewables.

Under the memorandum, IHI and Gentari will consider a business model for ammonia production and a suitable site for solar power generation in Johor, where green ammonia will be produced and 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,” said IHI in a statement on Thursday (Dec 15).

It said after concluding the feasibility study, which is expected to conclude in early 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 fertilisers could keep emissions of carbon dioxide throughout the supply chain at low levels," it said.

Furthermore, technologies for green ammonia production, storage, and transportation are already well-established and can accelerate market deployment, it added.

Through this feasibility exploration, IHI and Gentari aim to demonstrate several ammonia applications models in Malaysia and build a fuel ammonia supply chain to address the future increase in clean fuel demand. It will thereby help accelerate the adoption of fuel ammonia and contribute to improved sustainability.

IHI is a comprehensive 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 defence.  

Gentari is a clean energy solutions entity wholly owned by Petronas tasked to independently pursue and deliver integrated sustainable energy solutions, and to capture opportunities in the energy transition. Gentari 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, Gentari aims to be a full suite net zero solutions provider, creating greater value, connecting businesses, and making the journey to net zero possible.