ESSA: Ammonia has potential to become

low-carbon energy alternative

Monday, March 22 2021 - 10:32AM WIB
By Rara Suratmi
IDX-listed PT Surya Esa Perkasa Tbk (ESSA), which is engaged in the energy
and chemicals sector through its LPG (liquefied petroleum gas) refining and
ammonia production, sees global ammonia price rising due to tight supplies.
ESSA said in a statement obtained Monday it also sees significant upside
potential to developing blue ammonia at its ammonia facility as a future low-
carbon energy alternative.
Ammonia is widely used as a raw material for the manufacturing of fertilizers,
plastics, and chemicals around the world. However, current demand forecasts of
ammonia do not take into account the rapid recognition of ammonia’s role as a
fuel of the future due to its high hydrogen content, zero CO2 emissions during
combustion, and proven delivery logistics.
President Director & Chief Executive Officer of ESSA, Vinod Laroya revealed,
“Even though the price of ammonia decreased significantly as a result of the
Covid-19 induced slowdown in 2020, we believe the ammonia market remains
relatively resilient to the pandemic. This is indicated by the sharp rebound in
ammonia prices from January 2021, largely driven by supply constraints and the
beginning stages of demand recovery."
Read also: Surya Essa, partners, plan CCUS to produce blue ammonia in C.
Sulawesi
ESSA’s subsidiary, PT Panca Amara Utama (PAU), located in Luwuk, Banggai,
Central Sulawesi, is currently the first ammonia plant in the world to employ the
latest and most energy efficient technology, KBR’s Reforming Exchanger System
(KRES) and Purifier Technology.
The company said it is looking to leverage its strong operation base to build next
generation products, particularly blue ammonia.
On March 18, 2021, ESSA through PAU, has signed an MoU on Carbon
Capture, Utilization & Storage (CCUS) together with Japan Oil, Gas and Metals
National Corporation (JOGMEC), Mitsubishi Corporation (MC), and Institut
Teknologi Bandung (ITB) to develop low-carbon ammonia production, also
known as blue ammonia in Indonesia.  “This asserts our commitment to creating
a sustainable future while expanding ammonia’s current market reach," he
continued.
Meanwhile, in terms of financial performance, based on audited consolidated
financial statements as of 31 December 2020, ESSA managed to book revenue
of US$175.5 million in 2020, lower by 21 percent compared to $221.9 million in
2019. ESSA recorded a net loss of $33.6 million in 2020.
Despite a weakening of prices and reduction of production in 2020 due to Covid-
19 and related difficulties, ESSA managed to maintain its operational
performance in 2020 amid unfavorable global conditions by recording LPG
production of 61,448 MT (-17.9% from 74,871 MT in 2019), condensate
production of 139,961 barrels (-15.1% from 164,948 barrels in 2019), and
ammonia production of 659,734 MT (-13.9% from 766,988 MT in 2019).
Editing by Reiner Simanjuntak