Minister urges Japan?s IHI to expand coal gasification project in RI

Minister of Industry Airlangga Hartarto met with visiting President Director of IHI Corporation Tsugio Mitsuoka on Friday, urging the Japanese company to further expand its coal gasification project in Indonesia, taking advantage of the country?s abundant low rank coal reserves.

Arilangga said in a statement obtained Saturday that the methanol gas output from the coal gasification is needed as raw material for the domestic fertilizer and petrochemical industries.

IHI Corp set up a coal gasification pilot project at the compound of state-owned fertilizer firm PT Pupuk Kujang in West Java in 2013, and started successful production trial last year. During the production trial, the plan convert 50 tons of coal into 1,800 mmbtu of gas per day, the statement said.

The coal gasification plant is expected to start commercial operation next year, Airlangga said.

Meanwhile, Antara quoted Airlangga as saying that the government has recommended IHI to expand the project in East Kalimantan, a key source of coal production in the country.

Editing by Reiner Simanjuntak