Business Daily Media

The Times Real Estate

.

Indonesian, Australian firms team up on zero-emission steel

  • Written by PR Newswire

JAKARTA, Indonesia and PERTH, Australia, Nov. 6, 2023 /PRNewswire/ -- Leading private Indonesian steelmaker PT Gunung Raja Paksi Tbk (GRP), a member of Gunung Steel Group, is working towards a greener, more inclusive future, with a plan to reduce carbon emissions from the steel industry by replacing natural gas with green hydrogen produced on site using Australian technology. The Indonesian and Australian governments are backing the initiative, with a technical feasibility study now underway through the government-supported business development program Katalis.

Indonesian, Australian firms team up on zero-emission steel Leading private Indonesian steelmaker PT Gunung Raja Paksi Tbk (GRP) announcing an initiative to replace the use of natural gas at its factories with green hydrogen produced using Australian technology (6/11/23).

If successful, the plan could see GRP replace natural gas at its plant in Cikarang, West Java, with green hydrogen sourced from Australian green energy company Fortescue.

"Transitioning to a green economy requires a concerted effort across businesses to collaborate, innovate and invest. Katalis is proud to support the technical feasibility study that will inform the viability of producing steel at zero emission and at the same time progressing economic partnership and more integrated markets between Indonesia and Australia," said Paul Bartlett, Katalis Director.

The Technical Feasibility Study was foreshadowed in GRP and Fortescue's memorandum of understanding[1] signed at the B20 summit in Bali in November 2022. Under the MOU, the two parties agreed to investigate how green hydrogen and green ammonia supplied by Fortescue could be used to help decarbonise GRP's steelmaking factories, as well as offtake opportunities. These could aid GRP's ambition to achieve full operational carbon emission reduction in its existing processing plant by 2030 and carbon neutrality by 2050.

"Decarbonising our steel production is in line with our commitment to achieve net zero and will provide us with a competitive regional advantage. Katalis support for the technical feasibility study to pursue the use of green hydrogen at our plant in West Java will go a long way to help Indonesia's steel industry reinvent and pursue new commercial models," said Kimin Tanoto, GRP Member of the Executive Committee.

Steel production is energy intensive, requiring substantial amounts of gas to power production plants.  Long-term, the plan could see the companies working together to develop a green hydrogen plant within GRP's steel manufacturing plant in Cikarang, which spans more than 200 hectares. The green hydrogen produced in this plant would potentially replace the natural gas currently used in GRP's downstreaming process and ensure continued efficiency.

Fortescue is providing technical input into the Katalis-funded study, which will analyse the potential of replacing the burning of carbon-emitting natural gas at GRP's stationary combustion steel manufacturing operations with green hydrogen gas.

"Fortescue is leading the global development of green electrons, green hydrogen and green technology that will help step the world beyond fossil fuels. We want other companies to join us to combat climate change. We welcome the support of Katalis to enable the collaboration with PT Gunung Raja Paksi Tbk and look forward to helping Indonesia develop and deploy green technology in the steel industry," said Eva Hanly, Fortescue Energy President, Asia Pacific.

The study is due to be completed in December 2023.

References

  1. ^ memorandum of understanding (fortescue.com)

Read more https://www.prnasia.com/story/archive/4256671_AE56671_0

Businesses losing an average of $493k from data integrity flaws

Managing data responsibly and effectively for the AI age can give organisations a strong competitive advantage, but many are failing to harness th...

AI shopping disruptor Zyft raises $7.5M to lead the next gen of retail tech

Zyft appoints new CEO, Richard Stevens, to lead the latest Waller Group success story, valued at $30 million SYDNEY, 28 April 2025: Zyft, the lea...

Little known law offers savvy Kiwis the opportunity to supercharge their retirement savings

A little-known legal amendment is being leveraged by savvy New Zealanders and expat Brits to supercharge their retirement savings. Not many peop...

Cutting edge AI technology designed for doctors to reduce patient wait times launched in NZ

New Zealand specialist doctors now have access to Artificial Intelligence technology to help reduce patient wait times and experts say it could be...

Launchd Takes Off: Former AFL Stars Lead Tech-Powered Platform Set to Disrupt Talent and Influencer Marketing

Backed by Institutional Capital, Launchd Combines Five Leading Agencies and Smart Technology to Deliver Measurable Results Influencer marketing i...

Meet the Australian fintech unlocking rewards for small businesses

Small businesses make up 98 per cent of all businesses in Australia, yet they continue to bear the brunt of economic uncertainty. According to Credi...

Sell by LayBy