Discussion on Green Ammonia Project for Indonesian Market

Between BCE & KAPSOM

On October 16, 2023, the management team from the Indonesian BCE Company visited KAPSOM , to discuss and exchange details regarding the planned green ammonia project.

Indonesia Holds Enormous Potential for Green Energy

Indonesia, the world's fourth-most populous nation, the leading economy in Southeast Asia, and a regional coal hub, is driven by its immense population and rapid economic growth, which have led to a continuous rise in its electricity demand. In the global trend toward “decarbonization”, Indonesia has also begun seeking the transformation and development of green and sustainable energy systems. It has committed to achieving a 23% share of new and renewable energy in its national energy structure by 2025 and aims to reach carbon neutrality by 2060.

Indonesia has a total renewable energy potential of 3,686 GW, including solar, hydro, wind, geothermal, biomass, and ocean energy. As of October 2022, the developed and utilized renewable energy resources amount to 12,505.83 MW, with a utilization rate of 0.3%, indicating significant untapped potential for development.

Discussing the Green Ammonia Pilot Project

BCE owns multiple hydropower projects and has historically sold 100% of its hydroelectric production to the local national grid. In recent years, Indonesia has seen new opportunities in the development of green energy, and BCE is actively exploring new business models for its hydropower projects, seeking power-to-x solutions. During this visit to KAPSOM, the main focus of discussion revolved around the green ammonia solution and the Indonesian green ammonia market. BCE plans to use 1,130 megawatts of renewable energy through hydropower and is looking to leverage KAPSOM's core processes and critical equipment to ensure the success of the green ammonia pilot project. This collaboration aims to facilitate a transformation in the company's business model and enhance product value.

After the exchange, the BCE project management went to our equipment manufacturing base to visit KAPSOM's newly developed green ammonia production plant and gain an in-depth understanding of the process flow, equipment parameters and control system of this equipment.

This exchange has provided us with a deeper understanding of the demand in the Indonesian green chemical market. KAPSOM is eager to collaborate with outstanding companies like BCE to leverage the abundant local natural resources and transform green energy sources such as wind, hydropower, and solar energy into renewable energy solutions that meet the local development needs. This partnership will aid Indonesia in successfully achieving its energy transition and 2060 carbon neutrality goal.