Three Companies Will Build a Downstream Factory that will turn Coal into DME

Jakarta, APBI-ICMA: February 8, 2019 reported that PT Bukit Asam Tbk (PTBA), PT Pertamina (Persero) and Air Product carried out a continuation of the MoU on cooperation regarding coal gasification. The three of them launched the coal downstreaming plant into Dimethyl Ether (DME) at the PTBA Peranap mine, Riau.

BUMN Minister Rini Soemarno hopes that the realization of the coal downstreaming will be realized soon. According to him, Indonesia must continue to develop the coal downstreaming industry not only in reducing imports but also in developing exports.

"Downstreaming is also important in an effort to reduce pollution from coal by producing clean energy in the form of syngas which will be upstream from various products such as DME and even diesel and aviation fuel," Rini said in a written statement on Thursday (02/07/2019).

The PTBA mining area in Peranap will later become the location of coal gasification because it has large reserves of low calorie coal. With the coal gasification project at the Peranap Mine Mouth, it is said to be able to revive and optimize the role of Peranap coal for national energy security.

Through gasification technology, coal will be converted into syngas which will be processed into the final product. Later PTBA will supply coal from the Peranap mine area to a joint venture company to be processed into final products by Pertamina. Meanwhile, technology design optimization will be carried out by Air Products and Chemicals Inc.

Furthermore, low-calorie coal originating from the Peranap PTBA mine, Riau, will be processed into syngas and then processed into DME which Pertamina uses as LPG substitution.

The DME used for the LPG is said to be one of the steps of BUMN synergy and Pertamina's move to suppress LPG imports. Therefore, this step is considered a strategic step nationally.

After the declaration, the next stage will also be carried out, namely construction of factory construction. The plan is that the coal downstream business at the mouth of the Peranap coal mine has a capacity of 1.4 million tons of DME per year with coal needs of 9.2 million tons per year.

To note, the declaration carried out is a continuation of the MoU of cooperation and Joint Venture Agreement related to coal downstreaming between PTBA, Pertamina and Air Products, where the signing of the MoU on cooperation was carried out on November 7, 2018 in Allentown, United States.

In mid-January 2019, the three companies also agreed to establish a joint venture company engaged in the business of processing coal and derivative products. The Agreement is set forth in the Principles of the Agreement to Establish PTBA Peranap Coal Mine Downstream Joint Venture Company, Riau.

The announcement was marked by a push of a button by PTBA President Director Arviyan Arifin, Director of Investment Planning and Risk Management Pertamina (Persero) Heru Setiawan, and President Director of PT Air Products Indonesia Triwidio Pramono. In addition, there is also the President Director of PT Indonesia Asahan Alumunium (Persero) Budi Gunadi Sadikin, Riau Provincial Secretary Ahmad Hijazi and Deputy Regent of Indragiri Hulu Khairizal.


Source: will-build-factory-hilirization- coal-dadi

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