Consortium set to start FS on coal liquefaction plant project
Saturday, July 14 2007 - 01:34 AM WIB
Following its establishment in May, a consortium will start to conduct a feasibility study (FS) on the plan to build a coal liquefaction plant, which will be the first one in Indonesia.
Bukin Daulay, the director of the Energy and Mineral Resources Ministry’s Mineral and Coal Technology Research and Development Center, said Friday that the feasibility study on the project would begin in August and would take six months to complete.
“JBIC (Japan Bank for International Corporation) will finance the FS by providing a grant of US$500,000,” Bukin said following a meeting between officials.
He said that the consortium had agreed during the meeting to build the US$1.3 million plant in coal-mining firm Arutmin’s mining concession in Satui, South Kalimantan.
He said that Arutmin might supply 2.5 million tons of coal to the plant, which would be converted into liquid fuels like gasoline and diesel. The plant will have an initial capacity of 13,500 barrel per day and the output will be ramped up to 27,000 bpd in 2017.
The plant is expected to come onstream in 2013.
The other members of the consortium were likely to contribute to the project in the form of equity. However, precise figures had yet to be discussed, Bukin said.
Japanese companies that are eager to take part in the project include METI, NEDO, JBIC, JCOAL, KOBELCO and Sojiz Corp, Bukin Daulay said on May, 2007.
Earlier, to expedite the construction of coal liquefaction plants, the government and 11 companies have signed a Memorandum of Understanding (MoU) to establish a consortium. They include PT. Adaro Indonesia, PT. Jorong Barutama Greston, PT.Bumi Resources, "tekMIRA", PT.Rekayasa Industri, PT.Tambang Batubara Bukit Asam (PTBA), PT.Berau Coal, PT. Pertamina (Persero), PT. DH Power, PT. Bayan Resources, PT. Ilthabi Bara Utama and AES Asia & Middle East. (godang)