BlackGold Energy to develop coal liquefaction plant

Coal mining firm PT BlackGold Energy Indonesia signed on Wednesday an MoU with US engineering firm Burns & McDonnell to jointly develop a coal liquefaction plant in Indonesia, Kontan reported on Thursday.

The paper quoted Chief Executive Officer of BlackGold Energy Indonesia, Phil Richard as saying that the planned coal liquefaction plant will be developed near the company?s coal concession in Indragiri Hulu, Riau. ?We?re currently carrying out the feasibility study so there are no details yet,? Richard said.

The feasibility study is expected to be completed within 6-12 months. If deemed economically feasible, the two firms will allocate between US$500 million and $1 billion to develop the project. Richard said that the plant must be large scale to ensure efficiency.

The final production could be either methane gas or diesel fuel. ?Pertamina (state-owned oil and gas firm) will be the potential buyer of the product,? Richard said.

Kontan said that aside from the coal liquefaction plant project, the two firms are also conducting a study to develop a mine-mouth power plant. (*)