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More low rank coal upgrading and coal gasification plans will be shared at World Clean Coal Conference, Indonesia 2016!
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Japan Sets Up Gasification Prototype to Help Indonesian Fertilizer Firms
Feb. 26, 2015

IHI Gasification Indonesia, a subsidiary of Japan-based IHI Corporation, commenced operations on Thursday of a prototype plant that converts brown coal to gas, marking the first step for a Japanese technology that will provide an alternative raw material for the production of fertilizer in Indonesia.

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The plant, dubbed the Twin IHI Gasifier (Tigar) Prototype Plant Project, converts abundant but rarely used Indonesian brown coal into fertilizer feedstock. It is located in the Pupuk Kujang industrial complex in Cikampek, West Java. Pupuk Kujang is a unit of state-owned Pupuk Indonesia.

Speaking after a ceremony to mark the start of operations, Pupuk Indonesia president director Arifin Tasrif said the company’s demand for natural gas for fertilizer by 2050 would be 50 percent higher than current consumption of 700 million to 800 million standard cubic feet per day.

Indonesian fertilizer companies often compete with local power generators, other manufacturers, and exporters in sourcing gas from domestic gas producers.

National Democratic Party (NasDem) lawmaker Kurtubi, a member of House of Representatives Commission VII, which oversees energy and mining, said during the ceremony that the nation’s abundant gas resources are mostly located in remote regions, which often lack connections to Indonesia’s industrial centers.

Montty Girianna, a director for energy, minerals and mining at the Coordinating Ministry of Economic Affairs, said the new technology was appropriate for Indonesia and that it could be used immediately.

IHI Gasification Indonesia will not sell its gas to the country’s fertilizer industry until completing a complete assessment of the plant capacity by 2017. Until then, all gas produced at the plant will be incinerated.

Daizo Takayanagi, a manager at IHI Corporation, said the plant will consume about 50 metric tons of brown coal a day.



Japanese Mitsui eyes coal gasification projects in Indonesia
By Linda Yulisman, May 18, 2015

Japan-based diversified company Mitsui & Co. Ltd. plans to expand its investment in Indonesia’s energy sector through a coal gasification project.

Yukio Takebe, the president director and CEO of Mitsui Indonesia, a local business unit of the group, revealed the interest during a recent meeting with Industry Minister Saleh Husin in Jakarta.

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“In the coal sector, Mitsui aims to increase the value of coal to go beyond an energy source. It can raise the coal grade from low to high,” Saleh said in a statement during the Wednesday meeting.

The processed coal would be expected to supply raw materials for the domestic fertilizer industry, he added.

Saleh did not elaborate on the investment value or time frame for the proposed project. Takebe declined to comment on his discussion with the minister.

The expansion plan came up after a recent visit to Japan by Vice President Jusuf Kalla and the Industry Minister in March, during which they met with a number of top business executives from Japanese giants, such as Mitsui, Mitsubishi, Marubeni and Toyota Motor.

Mitsui, which operates a wide range of businesses in Indonesia, including steel, automotive, petrochemical, transportation and logistics, power generation and finance, has long had a presence in Indonesia’s energy sector.

Through Paiton Energy, a consortium of foreign firms and a local firm, Mitsui built coal-fired power plants in Probolinggo, East Java.

Mitsui is now bidding for a coal-fired power plant in South Sumatra along with Adaro and Korean Electric Power and another project in West Java or Banten together with Adaro and GDF Suez.

The firm is also teaming up with state-owned fertilizer company Pupuk Indonesia Holding Company on a number of projects to support the government’s plan for food sufficiency. The two are conducting a joint study on coal gasification in Kalimantan and Sumatra.

Indonesia holds abundant reserves of low-grade coal, but they are yet to be optimized because of high moisture and lower heating value content.

Coal gasification technology helps transform lignite coal into gas and other feedstocks, which then serve as a competitive source of manufacturing inputs.

Indonesia’s government has cooperated with Japan’s Ministry of Economy, Trade and Industry (METI) to develop a coal gasification project, which involves state-owned fertilizer firm Pupuk Kujang and Japan’s engineering giant IHI Corporation.

Recently, IHI Corporation kicked off the trial operation of its gasification prototype plant in the area of Pupuk Kujang in Cikampek, West Java.

The plant turns low-grade coal into chemical feedstocks, particularly hydrogen and nitrogen, to produce ammonia fertilizer.

The Industry Ministry’s director general for chemicals, textiles and miscellaneous industry, Harjanto, said that Mitsui also showed an interest in another project of coal liquefaction in ethanol, which converted brown coal into a liquid fuel. This project, together with coal gasification, would come as a solution for Indonesia’s attempt to achieve self-sufficiency in both food and energy.

These processes will give significant added value to our coal at times we’re coping with high domestic gas prices. They will serve as a breakthrough for our industry, especially fertilizer and food production,” Harjanto said.

Coal gasification is one of the quick wins that the ministry has mapped out to meet energy supply shortages and feed the struggling manufacturing industry.



Loesche opens a new subsidiary in Jakarta, Indonesia
By Global Cement, December 18, 2013

Loesche has opened an overseas subsidiary PT Loesche Indonesia (LND) in Jakarta. The new subsidiary will be managed by Detlef Blümke, who has been head of the company's commissioning department and deputy-director of Loesche's technical field service.
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"Blümke's strong technical background and experience in developing new markets for our service activities has made him an excellent choice as managing director of PT Loesche Indonesia," said Dr Joachim Kirchmann, Loesche's joint CEO. Blümke will establish PT Loesche Indonesia in the Asian market and developing the company's presence as a new regional service hub for the Loesche Group.

Blümke took up his new role at the start of October 2013 and PT Loesche Indonesia is scheduled to be fully operational from 1 January 2014.



JGC Coal Fuel Answer to Government's Coal Upgrade Program
By ESDM, December 9, 2013

JGC Coal Fuel (JCF) is the perfect answer to the government’s coal upgrade program. The Ministry of Energy and Mineral Resources has recognized this potential and is shown Vice Minister, Susilo Siswoutomo’s visit to the pilot factory in Karawang on Saturday (7/12). This factory, able to produce an estimated 10.000 tonnes of JCF per year, is partly funded by the New Energy and Industrial Technology Development Organization (NEDO) under their International Cooperation Project for Verification and Demonstration of Clean Coal Technology program since 2010.
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JCF is produced by upgrading coal calorie values by means of hot water treatment (HWT) and converting these low calorie coals into liquefied form, commonly known as low-rank coal (LRC) slurrification technology. This technology has been tested and proven in Japan since 1959. PT JGC Coal Fuel as the sole producer of JCF aims to offer their product at 30%-50% below the market price for heavy oil.

JCF has many industrial potential users which are mainly for downstream purposes, including industrial boilers, power plants, engine oil, and coal gasification. Similar projects have been implemented in China with satisfying results.



KEPCO in talks with PLN to jointly develop coal gasification project building in Indonesia, sources say
By Deviana Chuo and EunYoung Chough, December 6, 2013

Korea Electric Power Corporation (KEPCO) and Indonesia state-owned electricity utility company Perusahaan Listrik Negara (Persero) (PLN) are in talks to jointly develop a USD 2.6 bn coal gasification project in Indonesia, a person familiar with PLN and a person familiar with KEPCO said.
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PLN and KEPCO have joined in a pre-feasibility study of this project, which will be built in Bekasi, West Java, according to the person familiar with PLN. The companies are still in talks and are targeting to start by early 2014. The companies may form a joint venture (JV) company or joint operation partnership for this project. Howeer, PLN may prefer to form JV to secure this long term-partnership and percentage of ownership will be discussed further, he said.

The project will need one more strategic partner, a coal producer to supply the coal, the person familiar with PLN said. Both PLN and KEPCO are talking to the Indonesian coal producers namely Indika Energy (Indy:JKT), Bukit Asam (PTBA:JKT) and Arutmin Indonesia, but no agreement has been reached yet, he added.

KEPCO's investment will be conducted through its subsidiary KEPCO-Uhde, a joint venture (JV) between KEPCO and the Germany based- ThyssenKrupp Uhde and is likely to be the leader of the project, the person familiar with KEPCO said, confirming the investment plan. The feasibility study has finished and KEPCO is also talking with other strategic partners for this project, he said.

The coal gasification project will process the coal into synthetic gas (syngas), with about 150mmcfd per year and need about 5 m tons of 4,000 calories-coal per year, the person familiar eith PLN added.

KEPCO will provide the coal gasification technology, while PLN will act as sygas user to support its power plants’ fuel needs. PLN needs about 1,700-2,000 mmbtu of gas per year, he said.

“The project construction is targeted to start by the end of 2014 and needs four years for completion,” the person familiar with PLN added.



Pusri-Bukit Asam to Complete Feasibility Study for Coal Gasification
By Irwan Wahyudi, October 1, 2013

PALEMBANG - PT Pupuk Sriwidjaja (Pusri) Palembang and PT Bukit Asam Tbk (PTBA) will complete feasibility study of coal gasification the latest by early 2014 aiming to sustain and maintain supply stability of gas raw material for Pusri.
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Pusri's President Director Musthofa said Pusri has secured agreement with Bukit Asam for coal gasification project. "Yes we have conducted Head of Agreement and now is still under feasibility study," Musthofa explained.

Musthofa added following the agreement, there will be evaluation to see whether or not it is bankable, if it is, gasification project may commence. “Coal supplies should be consistent for a minimum of next 20 years,” Musthofa said.



New Process May Put Cleaner Face on Dirty Coal
By Javier E. David, June 4, 2013

After years of being derided for hurting the environment, could new uses for coal help revive its reputation?

Energy watchers have begun touting the virtues of coal gasification, a process that converts the carbon-based fuel into a synthetic called "syngas." This can be used as an alternative for both crude and natural gas, the latter of which is quickly becoming instrumental to producing power and manufacturing chemicals.

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Recently, Nomura cited coal gasification and creating liquid fuels from natural gas – a technique known as gas-to-liquid (GTL) – as a way to sate global crude oil demand. The firm tied the process to the shale revolution sweeping the U.S., saying it could eventually rival natgas and conventional crude, which could in turn help pioneer a coal resurgence. "Supply/demand and prices in the global oil market would probably see a huge impact if coal gasification and GTL were to replace oil on a large scale in China and the U.S., the world's two largest consumers of energy," Nomura said.

"We think that syngas made from coal and natural gas could replace as much as 30-40 percent of the expected increase in global crude oil demand between 2011 and 2020," the bank added.

Coal gasification has a lengthy history, yet its proponents point out that the process, which removes coal's most harmful elements before combustion, makes it easier on the environment.

Given that coal is often cited as a leading producer of carbon dioxide emissions, the move to boost its profile may reduce the stiff headwinds the fuel has faced in recent years, as fears over climate change and the shift toward alternative energy pushed coal into a sort of disrepute in some circles. According to the American Coalition for Clean Coal Electricity, a public policy advocacy group, U.S. companies have invested about $90 billion since 1990 searching for ways to make coal a cleaner energy resource. Duke Energy is one U.S. company at the leading edge of trying to make it profitable to use coal in a cleaner way. The power company recently completed construction on a massive coal gasification plant in Indiana, only recently green-lighted after years of being mired in controversy, largely over the plant's $3.5 billion price tag.. Honeywell, Shell and General Electric are other firms currently involved in coal-based syngas production.

According to energy watchers, Duke's 618-megawatt project underscores how coal has reached a crossroads, amid a broad revival in fossil fuel production. Should the process of generating coal and gas synthetics pick up momentum, it could accomplish two feats: making coal more environmentally friendly, while putting new downward pressure on the price of crude.

Oddly enough, coal demand is on the rise almost everywhere but the United States: In a December 2012 report, the International Energy Agency cited cheap gas for the drop in demand for coal. Still, the agency said that in 2017 the fuel will come "close to surpassing oil as the world's top energy source," burning about 1.2 billion tons per year by then.

Oddly enough, coal demand is on the rise almost everywhere but the United States: In a December 2012 report, the International Energy Agency cited cheap gas for the drop in demand for coal. Still, the agency said that in 2017 the fuel will come "close to surpassing oil as the world's top energy source," burning about 1.2 billion tons per year by then.




Golden Eagle Energy expansion to the electricity and coal gasification
By Bisni.com, June 6, 2013

Coal producer, PT Golden Eagle Energy Tbk (SMMT) plans to expand into downstream by participating in private power projects (Independent Power Producer / IPP) or at the mine mouth power plant project.

Director of Golden Eagle Solar Energy Hendra Surya said coal mines in South Sumatra, which is managed by PT Triaryani , suitable for power plant fuel.

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Coal miner PT Golden Eagle Energy Tbk (SMMT) targeting business cooperation in the downstream sector. "It could be a mine mouth power plant and gasification" said Managing Director of Golden Eagle, Hendra Surya on public exposure in Jakarta, June 3, 2013. Hendra said the coal mine PT Triaryani suitable for power generation. The Company does not participate in the tender steam power plant projects (power plant) Sumsel 9 and 10. "But we will come to supply coal for the project"

According to him, the chances of entry in the plant is still wide open, as the number of mine-mouth power plant project, especially in the South Sumatra.

"Expansion in downstream there are two, first we see the potential of the power plant. We again spoke with the parties involved or who may have IPP project or mine mouth power plant, "he said, Monday ( 3/6 ) .

Unfortunately, Hendra reluctant to break with the party already exploring anywhere. Clearly, the company will only be taking a minority portion of the project.

"Secondly, we are also coal suitable for gasification. If the coal is converted to gas, more and more of its user. So we also explore it, "he said.

On the other side is on the upstream side, the increase in response to the discourse of coal royalty be 10 % , Hendra said the company had anticipated .

As is known, the company's coal business unit managed by PT International Prima Coal (IPC) and PT Triaryani , both holding a permit Mining Permit ( IUP ) , the royalty will be increased .

"We always have to obey the rules of the applicable law in Indonesia. If discourse was imposed, we will run . We already enter our terms of costing, we have anticipated this increase, "he said.

The trick is that the company is trying to reduce costs in other aspects in the hope it could replace the royalty fee hikes. During the three aspects of the most important costs, the cost of mining , logistics and transhipment can be managed , Hendra believe it could cover the increase in royalty fees .

In July 2012, the company conducted a large-scale business transformation by switching to coal mining and later changed its name to PT Golden Eagle Energy Tbk.





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