Korean firms sign Indonesian coal upgrading deal

GS Engineering & Construction, South Korea?s sixth-largest builder, has signed a technology cooperation agreement with state-run electricity producer Korea East-West Power (EWP) to export coal upgrading technology using palm oil residue (CUPO) to Indonesia, South Korea?s JoongAng Daily reported on Wednesday.

The CUPO technology increases the quantity of heat in low-quality coal by reducing moisture. The EWP and Korea Institute of Energy Research succeeded in increasing the amount of heat released after spending US$19 million over four years.

Both companies are planning to set up a CUPO plant in Indonesia by March 2017. Indonesia accounts for 40 percent of Korea?s coal imports, according to GS E&C.

EWP will be responsible for engineering and technological advisory, while GS E&C will manage the coal supply from Indonesia as well as the plant design.(*)