Indonesia needs six coal liquefaction plants

Indonesia needs at least six coal liquefaction plants to produce energy alternative in the form of crude synthetic oil (CSO) from the country's low-calorie coal reserves, according to the association of the country's coal producers (APBI).

"The construction of the six coal liquefaction plants will cost about US$7.2 billion, or about Rp 1.2 trillion each," the association's chairman Jeffrey Mulyono was quoted by Investor Daily as saying.

Jeffrey said that the development of the CSO production was needed to cope with the continued decline in the country's oil production. According to him each plant will need about 70,000 tons of low calorie coal a day to produce about 27,000 barrels of CSO a day.

According to the study made in Japan, each ton of low-calorie coal can produce about 4.5 barrels of CSO. The price of CSO is between US$23 and $30 per barrel at present.

According to him, the development of the six coal liquefaction plants would be needed for the short-term plan. But if Indonesia wants to use the CSO to meet all the fuel demand, it needs to build at least 309 plants by 2025, he said, adding that by 2025, fuel demand would reach at least 27,000 barrels per day. (*)