Petrogres, Pupuk Kaltim to use coal for power plants

State-owned fertilizer firms, PT Petrokimia Gresik (Petrogres) and PT Pupuk Kalimantan Timur (PKT) will soon convert energies, especially diesel and gas, into coal as part of the companies? efficiency program, Bisnis Indonesia reported Wednesday.

At the first stage of the energy conversion program, the two companies -subsidiaries of PT Pupuk Sriwidjaja Holding- will invest US$110 million or about Rp1.7 trillion.

Director General for Agro Industry and Chemical of the Trade Ministry Benny Wahyudi said that the reasons behind the companies? move to run energy conversion program is because the gas supply has shown a downward trend and an increase in operating cost due to the diesel price hike.

According to Benny, through the energy conversion program, fertilizer plants can save the cost of energy between 25 percent and 30 percent.

Under the plan, the companies will start to launch the energy conversion program next year. ?It takes 18 months to realize the program. The program is now under discussion,? Benny added.

On the energy conversion program, PT Petrogres and PT Pupuk Kaltim need coal supply of 769 tons per day and 2.003 tons per day respectively.

The power plant run by PT Petrogres has a capacity of 45 MW and PT Pupuk Kaltim 135 MW. (*)