PLN to build more coal gasification power plants

State-owned electricity utility PT Perusahaan Listrik Negara (PLN) plans to build a number of coal gasification power plants with total capacity of 800 megawatt across the country to reduce the use of costly diesel oil.

PLN's president director Dahlan Iskan said in Jakarta on Wednesday that the coal gasification power plants would be built near coal mines -- the reason it is also called mine mouth power plant -- to reduce shipment cost for coal supplies.

At present, PLN is building three small-scale power plants of the type in East Kalimantan, two in Sangatta and one in West Kutai, as pilot projects.

The three power plants with a combined capacity of 33 megawatt are being built in cooperation with local governments-owned companies, he said, adding the three were expected to begin commercial operation in September 2010.

In addition, PLN plans to build similar plants in Palu, Donggala and Toli-Toli areas in Central Sulawesi; and Mamuju in South Sulawesi.

According to Dahlan, the coal gasification plants will help reduce PLN's diesel oil consumption to 9.3 million kiloliters from 11.3 million kiloliters at present. (bernard)