An energy company from China has expressed interest in investing in the coal gasification project to produce Dymethyl Ether (DME) in Tanjung Enim, South Sumatra, as reported by the Ministry of Energy and Mineral Resources.
Two US companies left
Previously, the project was handled by two American companies: Air Products and Chemicals Inc. Both companies left Indonesia due to the change in the direction of the EBT development business to be based on blue hydrogen in the US.
The two companies withdrew from the coal downstream project with PT Bukit Asam Tbk (PTBA) and PT Pertamina (Persero) after the US provided subsidies in America’s blue hydrogen sector.
Meanwhile, the downstream business scheme, which is yet to exhibit apparent economic benefits in the eyes of investors, is the reason for the departure of the two US companies.
“Between PTBA and Air Products is a business scheme that may not meet the economic aspects,” said Luhut Binsar Pandjaitan, the Coordinating Minister for Maritime Affairs and Investment (Menkomarves).
Chinese companies shown interest
Idris Sihite, acting Director General of Mineral and Coal from the Ministry of Energy and Mineral Resources, said that a company from China, a construction and petrochemical company, Sedin Engineering Company Ltd. will continue the DME project with PT Kaltim Prima Coal (KPC) and a subsidiary of PT Bumi Resources Tbk (BUMI).
Currently, China had shown success in the process of coal gasification into DME with production reaching 12 million tons per year.
“China has experience in its construction, so there’s nothing wrong with us learning from those who have experience,” said Triharyo Soesilo, Special Staff to the Minister of Energy and Mineral Resources for the Acceleration of Infrastructure Development and Investment.
China is also one of the experienced countries that has succeeded in carrying out coal downstream and has CO2 injection technology at a lower cost.
Luhut Binsar Pandjaitan, Coordinating Minister for Maritime Affairs and Investment explained that CO2 injection technology originating from China is cheaper than the US.
DME downstream is an important National Strategic Project (PSN) because it will provide clean energy with a different character from natural gas, which often leaves waste.
