Japan?s Jogmec plans coal utilization project in S. Sumatra

Thursday, June 19 2014 - 05:22 AM WIB

By Rikordias D. Siahaan

Japan Oil, Gas and Metals National Corporation (Jogmec) said on Wednesday it was planning to develop a large scale coal utilization project in Pendopo, South Sumatera.

?We will develop the project under 3 main phases. Phase one is 600 MW mine mouth power plant, where its output totally will be sold to PLN (state-owned utility); and another mine mouth power plant which will co-fire coal and empty fruit bunch (EFB) obtained from palm plantations, where the electricity output will be used for the project internal needs (in-house),? said Takahiro Mochizuki, Jogmec director of coal development department during a Japan-Indonesia Coal Dialogue in Jakarta.

The other two phases largely will focus on the development of coal mine into a wide range of high value-added coal-derived products such as coal slurry, which later be converted into propylene gas and diesel oil. The other outputs are substitute natural-gas (SNG), and upgraded brown coal (UBC).

Jogmec said it will conduct pre-feasibility study of the project no later than December 2014, once it signed an MoU with the Indonesian Government regarding benefits that it will receive in return for developing the project. During the presentation Wednesday, Jogmec expressed its interest to be able to get the outputs as part of benefits it will receive.

In the same occasion the Directorate General of Mineral and Coal said it had just finished the negotiation of the MoU articles with Jogmec, and is expecting the MoU to be signed soon.

Editing by Reiner Simanjuntak

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