Consortium for USD 560 Million Coal-to-Methanol Plant Feasibility Study

Nov 2021

PT Powerindo Cipta Energy (PCE) and China National Chemical Engineering Corporation (CNCEC) have formed a consortium to start a feasibility study for a coal-to-methanol plant in Indonesia. Valued at USD 560 million, the project is set to be in the construction phase in the middle of 2022.

The said plant will be situated close to a coal mine in Meulaboh, Aceh and will be able to process up to 1.1 million tons of coal into 600,000 tons of methanol yearly. According to an Industry Ministry estimate, this is about half of 2020 domestic demand for methanol. This new project would decrease the country’s needs for imported methanol, considering that methanol imports have been rising annually due to industry demand and biofuel program.

The Indonesian government aims to develop the downstream sector, as reflected in the 2020 Job Creation Law and the 2020 revision of the Mining Law. The regulations allow companies to benefit from several incentives, such as royalty exemptions, special coal pricing and mining business permit (IUP) facilitation. The coal gasification aims to obtain more value out of Indonesia’s coal, with the country’s reserves exceeding 38 billion tons.

(Source: The Jakarta Post)

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