Indonesian state coal miner PT Bukit Asam expects coal gasification from first of its four plants being built by the company near its mine in Tanjung Enim, South Sumatra by 2024, a company official said on Monday.
The factories are being constructed in a consortium with state energy company Pertamina, state fertilizer producer PT Pupuk Indonesia, and petrochemical company PT Chandra Asri Petrochemical, director Fuad Fachroeddin, said at an industry conference in Bali. The commercial production for all these units will begin in 2024.
The plants will absorb 8 million tonnes of coal per year, as feed stock as well as for power generator for the plants and Bukit Asam is estimating commercial production to start in 2024.
Rest of the units will process the gas into urea, dimethyl ether (DME) and polypropylene, a material to make plastic, Fachroeddin said.
“This DME will be used as a substitute for liquefied petroleum gas (LPG) or as blending material for LPG,” he told Coaltrans conference participants, adding that Indonesia consumes around 7 million tonnes of LPG per year which are mostly imported.
The coal miner is currently finalising its study to develop the downstream industry for coal to produce these products.
Separately, Bukit Asam will also develop another DME plant in Riau province that is expected to consume 8.7 million tonnes of coal per year.News Source: REUTERS