Indonesian companies develop five strategic downstream coal projects

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PT Bukit Asam (PTBA) is developing at least five strategic coal downstream projects covering the gasification of coal to produce a variety of products, some of which are at various stages.These include plans to gasify coal to make DME, which is expected to replace liquefied petroleum gas (LPG), but is currently hampered by economic and infrastructure fitness issues. Has approached a number of potential partners in China, only East China Engineering and Technology Co., Ltd (ECEC) expressed interest in investment, its proposed processing service fee (PSF) higher than the Ministry of Energy and Mineral Resources of Indonesia in 2021 expected; for artificial graphite will be in cooperation with the National Research and Innovation Agency (BRIN), in the basic engineering design preparation and updating stage, is expected to be completed by the end of 2025. Total investment of about 287.39 billion rupiah, plans to build a pilot plant in Tanjung Enin in 2026, pilot plant construction in 2027-2028, test commissioning and maintenance in 2029, the product can be used for electric vehicle battery anode, accounting for 22% of lithium battery components; the enterprise will cooperate with the University of Gatchamada (UGM) in research and development of humic acid, used in the field of agriculture, which can improve the soil quality and fertility and help the country's agricultural productivity. Using low calorie coal from Peranap Coal Mine in Riau Province to make the initial prototype, plans to process 60 tons of coal per year to produce 21 tons of humic acid at a cost of Rp 57.4 billion, targeting to enter into the commissioning stage in 2025, with funding from internal sources.

The venture will also invest US$3.2 billion (about Rp 52.58 trillion) in partnership with Pertamina Gas Indonesia (PGAS), aiming to provide alternative solutions to the country's natural gas needs and increase the diversity of the country's natural gas energy portfolio. Utilizing 2.93 billion tons of low-calorie coal, with an annual consumption of 8.4 million tons to produce 240 billion BTU/day (about 1.6 million tons/year), it will be constructed in Tanjung Enin and carried out through a joint venture model (PTBA, PGAS, and technology partners), with PGAS distributing it through its existing pipeline network; methanol plays an important role in a wide range of industries such as petrochemicals, textiles, and plastics, and it can be used in the production of Currently in the feasibility study stage, it is planned to consume 4.7-6.3 million tons of coal per year and produce 1.5 million tons of methanol per year, with a capital expenditure of about US$2.3 billion and a return on investment of 14%-15%.

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