Integrating Safety and Economic Perspectives for Green Ammonia Development: Case Study of PT GAI with Incentive from Carbon Tax and Incentive for Green Industry Consideration

DOI

10.2991/978-94-6463-944-5_3How to use a DOI?

Keywords

QRA; economic analysis; green ammonia incentives

Abstract

Green ammonia offers a zero direct CO₂ emission pathway compared to conventional production, addressing the need for industrial decarbonization. PT Green Ammonia Indonesia (GAI) is developing a 300 metric ton per day plant in North Kalimantan powered by renewable hydroelectric energy from the Kayan River. Previous safety evaluations, including Quantitative Risk Assessment (QRA) with “What-If” and HAZOP analyses supported by ALOHA modelling, confirmed that identified hazards remain within internationally accepted risk levels without requiring significant capital expenditure adjustments. Building on this safety assurance, the present study revisits the project’s economic viability by incorporating two market-oriented policy mechanisms: incentive from carbon taxation on conventional ammonia and government incentives for green ammonia production. Scenario-based modelling integrates baseline feasibility data with variations in carbon price and electricity subsidies, assessing impacts on feasible cost and internal rate of return (IRR). Results indicate that even moderate carbon prices combined with targeted electricity cost reductions significantly enhance competitiveness, narrowing or eliminating the price gap with grey ammonia. The findings demonstrate that safety-proven green ammonia projects can strategically leverage emerging policy instruments to achieve stronger financial performance and long-term market positioning in a decarbonizing global economy.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Baskara Nugraha
AU  - Wiratni
AU  - Rochim Cahyono
PY  - 2025
DA  - 2025/12/26
TI  - Integrating Safety and Economic Perspectives for Green Ammonia Development: Case Study of PT GAI with Incentive from Carbon Tax and Incentive for Green Industry Consideration
BT  - Proceedings of the International Conference on Sustainable Energy: Toward Energy Transition and Net-Zero Emission (ICOSE 2025)
PB  - Atlantis Press
SP  - 19
EP  - 23
SN  - 3005-155X
UR  - https://doi.org/10.2991/978-94-6463-944-5_3
DO  - 10.2991/978-94-6463-944-5_3
ID  - Nugraha2025
ER  -