Decarbonizing steel production aligns with PT Gunung Raja Paksi Tbk’s (GRP) commitment to achieving net-zero emissions. As a leading private steelmaker in Indonesia, GRP initiated a plan to foster a more environmentally friendly and inclusive future, reducing carbon emissions in the steel industry by replacing natural gas with green hydrogen, generated on-site using Australian technology. The Indonesian and Australian governments support this initiative, with a technical feasibility study currently underway through the government-backed business development program, Katalis.

Paul Bartlett, Director at Katalis, emphasized the necessity for businesses to unite, collaborate, innovate, and invest in order to transition toward a green economy. Katalis takes pride in its support for the technical feasibility study, recognizing its potential to not only assess the feasibility of zero-emission steel production but also advance economic partnerships and foster more integrated markets connecting Indonesia and Australia.

This collaboration will provide a competitive regional advantage and significantly contribute to the transformation of Indonesia’s steel industry, enabling the pursuit of new commercial models. If this technical feasibility study succeeds, GRP plans to replace natural gas with green hydrogen, supplied by the Australian renewable energy firm Fortescue, at its Cikarang plant in West Java.

An established partnership between GRP and Fortescue commenced exploring green hydrogen and green ammonia to reduce carbon emissions in GRP’s steel manufacturing as stated in the memorandum of understanding (MOU) signed during the B20 Summit in November 2022. The objective is to achieve complete carbon emission reduction for GRP’s existing 200-hectare steel plant by 2030 and attain carbon neutrality by 2050.

Fortescue will actively contribute technical expertise to the Katalis-supported study, which assesses the feasibility of replacing the combustion of carbon-emitting natural gas in GRP’s stationary steel manufacturing processes with green hydrogen gas. This study is expected to be finished in December 2023.

Fortescue Energy President for the Asia Pacific region, Eva Hanly, expressed her appreciation for Katalis’ support, enabling collaboration with PT Gunung Raja Paksi Tbk, and their eager anticipation of assisting Indonesia in adopting and implementing green technology within the steel industry.

Steel production demands a substantial amount of energy, with a significant reliance on gas to power manufacturing facilities. The green hydrogen generated at this facility has the potential to replace the current use of natural gas in GRP’s downstream operations, thereby ensuring continued operational efficiency.

Achieving net-zero emission goals is a collective responsibility across all sectors. Hopefully, through this collaborative effort between GRP, Fortescue, and Katalis, decarbonization in the steel industry can be accelerated and serve as a model for sustainability in the broader industrial landscape.

By spearheading the transition to green hydrogen, these partnerships are not only paving the way for a greener, more inclusive future but also showcasing the vital role of innovation and cooperation in tackling climate change. As we move forward, it is our shared responsibility to build upon this foundation, working hand in hand to reduce carbon emissions and create a more environmentally resilient world, not only in Indonesia but for global sustainability.