Risk Management in Engineering, Procurement, and Construction (EPC) Projects for Green Ammonia Using Renewable Energy

Abstract

The government's efforts to achieve the Net Zero Emission (NZE) target by 2060 include setting near-term goals, such as the National Energy General Plan (RUEN), which aims for a 23% contribution from renewable energy in the national energy mix by 2025. As a result, companies currently relying on fossil fuel-based power plants are gradually transitioning to renewable energy sources. One example is fertilizer and petrochemical plants, which traditionally use gray ammonia derived from natural gas but are now shifting to Renewable Energy Green Ammonia (REGA), produced through electrolysis using water as the primary input and renewable energy as the utility source. These plants are developed by Engineering, Procurement, and Construction (EPC) companies within a mutually agreed timeframe between contractors and owners, making effective risk management essential to mitigate potential project delays. Statistical analysis including validity, normality, Mann-Whitney, and Spearman tests was conducted using SPSS software. The findings identify 14 dominant risk variables affecting project delays, categorized into three phases: Engineering / Design (7 risks), Procurement (3 risks), and Construction (4 risks). By implementing the recommended risk management strategies, this study aims to minimize risk impacts and serve as a practical guide for contractors in effectively managing risks in EPC projects for Renewable Energy Green Ammonia plants.