By Bernard Loebs
Physical work for the construction of an estimated US$2 billion plant that will process coal into methanol in Bengalon, East Kalimantan Province, has started since late June.
Rio Supin, GM for Business Development and Risk Management at coal miner PT Kaltim Prima Coal (KPC), which is part of the diversified Bakrie Group, said at a recent webinar that required equipment from US-based Air Products and Chemical Inc have arrived at the site of the project, which is targeted to start operation by end of 2024.
The coal to methanol (CTM) project is owned by a consortium comprising of PT Bakrie Capital Indonesia, PT Itacha Resources, and Air Products. The US firm will provide the required technology, and develop and operate the plant, while the Indonesian firms will provide the required coal and off-take the output.
Read also : Air Products says coal-to-methanol plant run under toll scheme
Rio said that the methanol plant will have installed production capacity of 1.8 million tons of methanol per year, of which 1.2 million tons will be supplied to domestic market particularly to meet the requirement of fertilizer industry, and the remaining 0.6 million tons to be exported to Japan, China, and South Korea.
In addition to methanol, the plant will also produce 8,000 tons per annum of sulfur as side product.
The CTM project will require 6.5 million tons of coal per year, of which 4.47 million tons as feedstock, and another 2.03 million tons for power generation. The coal will be supplied by KPC and Itacha.
Editing by Reiner Simanjuntak
