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Indonesia has a lot of low-calorie coal and needs to be converted to become synthetic gas. The Ministry of Industry considers that the potential for the development of coal gasification industry in the country is still quite large.

“Low-calorie coal can be developed to produce dimethyl ether gas that can replace liquefied petroleum gas (LPG) gas so that gas raw material imports are no longer needed,” said Director General of Chemical, Textile and Aneka Industries Achmad Sigit Dwiwahjono, As quoted by Antara, Sunday (15/1/2017).

Sigit rate, it takes an investment of Rp13 trillion to produce as many as 1,000 metric tons derived from coal gasification. “If calculated, in the period of testing, can be converted 100,000 tons of coal into 3,600 million metric british thermal unit (mmbtu) of gas per day,” he said.

Furthermore, if the gas produced is not used, it can be used for domestic industry at a price of about USD4-5 per mmbtu. “In addition to the potential, this investment will also generate great added value for the domestic industry because the gas can be utilized, just need to be built infrastructure,” said Sigit.

Previously, Minister of Industry Airlangga Hartarto said that business development in the field of coal gasification in Indonesia is needed to meet the needs of raw materials of fertilizer and petrochemical industries. “It can be used as raw material for fertilizer and methanol, in fact, gasification is one of alternative energy that can be used for industry,” he said.

Related to his meeting with CEO of Zemag Clean Energy Technology Gmbh, Fu Minyan some time ago, Airlangga said the German company will implement a pilot project of coal gasification facilities in Indonesia. “They said they wanted to invest here to develop a derivative of coal gasification,” he said.

For that, continued Airlangga, it encourages Zemag to work with local companies in building coal gasification industry in Indonesia. Regarding the location of the factory, offered in the region of Kalimantan and South Sumatra. “The development of this industry in Indonesia is actually still attractive to foreign investors amid the global economic slowdown,” he explained.

Meanwhile, Fu said, Indonesia has a source of low calorie coal is large enough. The result of meeting with the government, become input to develop investment in Indonesia. “Discussions with the government are very interactive, Indonesia needs coal derived gasification products for the manufacturing industry,” he said, adding that we are still exploring methanol investments with low-calorie raw materials.

Fu added that his side had discussions with the government to seek local partners in Indonesia to develop a coal gasification plant. “The government will help locate local companies in Indonesia if our investment is realized and the technology will give added value to the industry in Indonesia,” he explained.

Fu also claims Zemag technology is currently being implemented by 180 coal processing plants worldwide, including the first factory operating since 2000 in Germany. “We have the technology to reduce low-calorie coal moisture, process coal into briquettes, to coal gasification process. Processing can produce various types of derivative products such as methanol, ammonia, oil, until synthetic gas, “he concluded.

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