PTBA, Aussie firm team up to convert coal into oil

By Ruli Setiawan

IDX-listed state owned coal mining firm PT Bukit Asam (Persero) Tbk (PTBA) has signed a Memorandum of Understanding (MoU) with Australian firm Ignite Energy Resources (IER) to develop the Cat-HTR technology in Australia and Indonesia and to turn low calorie coal or lignite into synthetic crude oil and high quality coal or pulverized coal injection (PCI).

The synthetic crude oil, like petroleum, can later be processed into gasoline and kerosene, while the PCI can be directly used at steel manufacturing plant and low emission power plant, PTBA said in a statement on Tuesday.

The MoU was signed by PTBA?s President Director Wilawarma and IER President Director Dr. Leonard James Humphreys in Sydney, Australia on April 30.

PTBA has a vision to become a world-class energy firm with coal reserves amounting to 7.3 billion tons in Indonesia, Meanwhile, IER, an energy technology developer holding the patent right of Cat-HTR technology, also operates coal reserves amounting to 16.4 billion in the State of Victoria in Australia.

PTBA has sent samples of its low-calorie coal to Australia to undergo tests using Cat-HTR technology at a pilot factory owned by IER and the tests resulted in synthetic crude oil resembling crude oil in terms of quality and PCI with a calorie content of 7,000 kcal. kg.

The MoU provides an opportunity for PTBA to invest in the development of Cat-HTR technology in Australia and Indonesia and the development of coal deposit owned by IER in Victoria.

?This is a step to speed up to the process to bring PTBA into a world-class energy company,? PTBA said.

Editing by Johannes Simbolon