A Danish start-up has entered a $4 billion agreement to build a nuclear-powered ammonia plant in Indonesia.
Copenhagen Atomics is leading a four-party group from Denmark that has signed a MoU with two Indonesian state-owned enterprises, to develop an ammonia facility in the city of Bontang. The plant is set to be powered by next-generation nuclear reactors and have a million-ton capacity per year. This will make it one of the biggest low-carbon ammonia projects proposed to-date.
Copenhagen Atomics’s co-founder, Thomas Jam Pedersen, expects the plant to be able to produce the world’s cheapest low-carbon ammonia.
“I believe that with this plant in Indonesia we can get the price of ammonia down to $500 per ton,” he says.
That compares to $720–1400 per ton for wind or solar-generated ammonia in 2020, according to the International Renewable Energy Agency.
While nuclear power’s environmental risk-profile is different to traditional ‘green’ power sources, it is a low-carbon alternative to fossil fuels.