DH Energy plan to build coal upgrading facility

By Hiski Darmayana

PT DH Energy, through its subsidiary PT Pendopo Energi Batubara, is planning to build a coal upgrading facility in Prabumulih, South Sumatra, designed to raise coal calorie content from 2300 kcal/kg to 5000 kcal/kg.

?The upgrading facility will need 15 million tons of low-rank coal (with calorie content of 2300 kcal/kg) in order to produce 15 million tons of coal with calorie content of 5000 kcal/kg. All the low rank coal will be sourced from Pendopo,? DH Energy?s Executive Project Director Bambang Triharyono told Petromindo.com on Monday.

He said the project is still under feasibility study. ?In terms of technology, the problem has no obstacles. In terms of commercial viability, the project has to find the right time for operation,? he said, adding that the cost of the production is higher than the price of the upgraded coal.

?Thus, we still don?t have a target schedule for the operation of the project. It depends on the market situation and coal price,? he said.

Editing by Johannes Simbolon