Indonesian steelmaker PT Gunung Raja Paksi Tbk is collaborating with Australian green energy company Fortescue to replace natural gas with green hydrogen in its steel production. Supported by the governments of Indonesia and Australia, this initiative aims to achieve zero carbon emissions in steelmaking.
Indonesian and Australian firms are joining forces to create zero-emission steel production facilities. PT Gunung Raja Paksi Tbk (GRP), an Indonesian steel giant, plans to swap natural gas for green hydrogen in their Cikarang plant, with technology from Australian company Fortescue. The project has governmental support, with a feasibility study in progress.
If the project succeeds, GRP's plant will use green hydrogen from Fortescue, significantly reducing carbon emissions. The Katalis program is facilitating this study, emphasizing collaboration and innovation between Indonesia and Australia to advance green economies.
A memorandum of understanding signed in 2022 outlined the investigation into using green hydrogen for steel production. GRP aims to reduce its carbon emissions completely by 2030 and achieve carbon neutrality by 2050.
Decarbonizing steel production is crucial for GRP, providing a competitive edge in the region. Steel production requires high energy, typically from gas. The long-term goal is to construct a green hydrogen facility within GRP's plant, replacing natural gas and maintaining efficiency.
Fortescue is contributing expertise to the study, which is examining the potential for green hydrogen to replace natural gas in steel production. The company is at the forefront of developing green technology and urges other companies to join the fight against climate change.
The completion of the study is expected by December 2023. This collaboration could revolutionize the steel industry, making it cleaner and more sustainable.
GRP and Fortescue's partnership marks a significant step towards sustainable steel production. By replacing natural gas with green hydrogen, they set a precedent for industry-wide change, moving towards a greener future in steelmaking.