Jakarta, CNBC Indonesia – The government continues to encourage the increase in added value of coal through downstreaming, so that it is not just mining and selling.
One of the coal companies that plans to develop a coal downstreaming is PT Arutmin Indonesia, a subsidiary of PT Bumi Resources Tbk (BUMI), by converting coal into methanol. This plan is part of the requirements for the operational extension of PT Arutmin Indonesia to become a Special Mining Business License (IUPK) from the previous Coal Mining Exploitation Work Agreement (PKP2B).
Arutmin received an operational extension to IUPK on November 2, which is valid for the next 10 years.
Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the Arutmin coal downstream project is expected to start operating in 2025. The downstream project location from Arutmin is at IBT Terminal, Pulau Laut, South Kalimantan (South Kalimantan).
The raw material for coal that will be absorbed is 6 million tons per year with a GAR content of 3,700 kcal / kg. Later it will produce methanol as much as 2.8 million tons per year.
“The status of this project is currently the finalization of the study or Pre-FS (feasibility study), “he said during a Working Meeting with Commission VII DPR RI, Monday (23/11/2020).
A coal downstream project in the form of methanol products will also be undertaken by a company under PT Bumi Resources Tbk (BUMI), namely PT KPC. Project coal to methanol This is planned to be done by KPC together with Ithaca Group and Air Product.
The project, which is targeted to operate in 2024, is located in Bengalon, East Kalimantan. The coal demand is estimated to be around 5-6.5 million tons per year with a GAR content of 4,200 kcal / kg. This project will produce 1.8 million tons of methanol per year. The current status is the finalization of FS and business schemes.
Another methanol project is planned to be undertaken by PT Adaro Indonesia, a subsidiary of PT Adaro Energy Tbk (ADRO). This project is targeted to operate in 2027, located in Kotabaru, South Kalimantan.
“Feedstock (coal requirement) is around 1.3 million tons per year to produce 660 thousand tons of methanol per year. Currently, the status is finalizing the study (pre-FS), “he said.
In addition to converting coal into methanol, another project that is currently being worked on is the gasification project into Dimethyl Ether (DME) which is carried out by PT Bukit Asam Tbk (PTBA) with PT Pertamina (Persero) and Air Products. This DME project can be a substitute liquefied petroleum gas (LPG), so that it can reduce national LPG imports.
This gasification project is located in Tanjung Enim, South Sumatra. Through this project, coal raw material is estimated to be absorbed as much as 6.5 million tons per year with a GAR content of 3,700 kcal per kg and will produce DME products of 1.4 million tons per year.
“The current status is finalizing the study and the DME substitution scheme for LPG substitution and negotiating the project business scheme,” he said.
(wia)
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