Government to develop liquid coal as alternative to oil fuel

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that the government plans to develop liquid coal fuel in a bid to reduce the use of oil fuel in the country, Investor Daily reported on Tuesday.

"We have to find new energy alternatives to reduce reliance on oil. Coal could be liquefied and be used as fuel," he was quoted as saying by the daily, following a meeting with Vice President Jusuf Kalla.

The minister, however, said that the promotion of the liquid coal as fuel had not yet covered by the existing regulation. "The use of liquid coal as fuel should be backed up by the government. The government should therefore need to issue an umbrella regulation to support the use of liquid coal as an alternative of oil fuel," he added.

Meanwhile, Wimpy S Tjetjep, the head of research and development of the ministry of energy and mineral resources, said in Jakarta last week that the government would develop coal-bed methane (CBM) mining in several areas including Sumatra, Kalimantan and Java as part of its program to increase additional energy alternative in the country.

"The drilling of the first CBM well located at the Rambutan Pandopo field in South Sumatra had been completed. After this, we will drill four more wells in the area to find the CBM reserves," he added. (*)