Fertilizer plants ready to move to coal from gas

The government has prepared a scheme under which 12 fertilizer plants will shift to coal from gas for energy source. This diversification program needs at least US$500 million, the Investor Daily reported Friday.

?This energy diversification program from gas to coal has been prepared because the gas supply to fertilizer plants is on the constant decline,? Ministry of Industry?s director general of chemical and agro industries Benny Wahyudi said in Jakarta on Thursday.

?I have already met all the stakeholders of the fertilizer industry to take necessary measures for the energy diversification. I have asked them (plants? management) to discuss this internally so that it will become the decision of the company?s management. And there is a need for more in depth study,? Benny said.

In the initial phase, Benny said, the energy diversification will cover 30 percent of the plants? gas consumption. Gas is being used for steam and electricity.

The government, according to Benny, is currently mulling cooperation with fertilizer companies in China and South Africa in the application of technology to shift from gas to coal.

Benny said the money can be from the state budget or bank loans or third parties. (*)