1

Coal Gasification in Indonesia

This paper is submitted to the Coal Technology AssociationThe 33th International Technical Conference on Coal Utilization & Fuel SystemsJune 1-5, 2008, Sheraton Sand Key Hotel, Clearwater, Florida, USA.

byDr. Bukin Daulay

Suganal, Chem. Eng.Ukar W. Soelistijo, Ph.D (Retired)Senior Researchers

Research and Development Centre for Mineral and Coal Technology Agency of Research and Development for Energy and Mineral Resource Ministry of Energy and Mineral ResourcesRepublic of Indonesia2007Acknowledgement

The paper entitled Coal Gasification in Indonesia is submitted to The 33th International Technical Conference on Coal Utilization & Fuel SystemsJune 1-5, 2008, Sheraton Sand Key Hotel, Clearwater, Florida, USA.This paper is made possible through the cooperation between the colleagues at the Research and Development Center for Mineral and Coal Technology Bandung, The Research Centre for Tea and Chincona and The State-owned Fertilizer Plant.Bandung, November 2007List of Content

Acknowledgement ... 2List of contents 2

Abstract 31. Introduction . 32. Coal Potentials in Indonesia .. 43. Program and Progress of Coal Gasification in Indonesia .. 44. Chronological Progress of Investigation of Coal Gasification in Indonesia . 4 4.1 Laboratory scale (at MCTRDC) . 4 4.2 Pilot plant scale at Gambung Tea Plantation 4 4.3 Semi Commercial plant scale at Palimanan Cirebon West Java .. 5 4.4 Future trends 55. International status of large scale coal gasification 56. Concluding remarks .. 5References .. 6Enclosures .. 7Coal Gasification in IndonesiabyDr. Bukin Daulay

Suganal, Chem. Eng.Ukar W. Soelistijo, Ph.D (Retired)

Senior Researchers at the Research and Development Centre for Mineral and Coal Technology, Ministry of Energy and Mineral Resources, IndonesiaEmail: ukar@tekmira.esdm.go.idAbstract

In lieu with the Indonesia energy policy, due to limited natural oil reserves especially and gas reserves later on in the country then the utilization of Indonesian coal is very prospective. It means that coal is ready for making synthetic oil (synoil) as well as synthetic gas (syngas) due to the available large of coal resources in the country. At the mean time Indonesia is just trying to do investigation of both synthetic fuel development. In the case of possibility on producing synthetic gas from coal at pilot plant scale, the result of syngas has been successfully utilized as fuel gas at the tea plantation for drying the tea leaves. Also the effort of producing syngas from coal substituting diesel oil fuel for diesel generating power plant has been developed at semi commercial plant scale. Both applications are most likely tech-economically feasible.Based on the program of coal gasification in Indonesia it is expected that beyond the year of 2011 the commercial plant would have been developed. The coal resource in the country is amounted to about 61 billion tonnes and enough to satisfy the future demand for energy for another 100-150 years to come.Key words: Energy diversification, Indonesian coal, coal gasification, synthetic gas. 1. Introduction

As a whole, either direct or indirect utilization of coal would be able to be in function as bridge of energy from the present era of oil and gas toward the future era of new and renewable energy. Based on the available coal resource in Indonesia of around 61 billion tons, it would be able to supply energy as long as 100 years, at the extraction recovery of 75%, at the level of production of 400 million tons of coal per year.

To improve the status of the coal reserves in the country is required to be carried out to face the transition period from the era of oil and gas to the era of new and renewable energy, by using the more attractive new incentive of investment, due to the available coal as the greatest national fossil energy source which could be able to respond it within the next 150 years to come. It is also expected that the implementation of autonomy does not restrain the encouragement of the process of investment, however, it is just precisely to support it for the sake of the regional development. The encouragement of the real program of coal utilization vertical diversification through briquette making, gasification and liquefaction is required. The national primary energy mix at the present time coal consumption is of about 16.92% (or 1057.89 million BOE) out of the total national primary energy demand of 1057.89 million BOE and is projected to be around of 32.7% - 34.5 % (or 1003.4 1084.1 million BOE) out of the total national primary energy demand of 3138.9 3151.4 million BOE in the year of 2025 7).The exacerbation of the national energy development program is also required, in terms of carrying out completely exploration in order to obtain the final measured reserves of coal, where within the period of 100-150 years, it is required exactly the certainty of life time of coal reserves in the country, so that while within that period of time coal will have been exhausted and there will be still a lead time to develop new and renewable energy sources at intensive commercial scale.A balance re-allocation of national depletion allowance is necessarily required which is split from the revenue coming from the fossil mineral fuel to support the intensive resource exploration as well the development of technology of utilization anticipating the ever increasing national energy demand in the future. In the long term, utilization of coal as fuel is necessarily extended to be as raw material of the advanced industry, or not just as fuel, which is having added value that is greater than that of just as fuel.2. Coal Potentials in IndonesiaCoal resource potential in Indonesia is mainly distributed in two islands i.e. Sumatera island and Kalimantan island. It is amounted to 61 billion tonnes, where 53% is mainly located in eastern and southern Kalimantan and 47% in southern Sumatera area. The remainder is distributed in other areas of the country. (See Figure 1.1 and Table 1.1). The characteristics of the coal reserves can be seen on Table 1.2, where13% is high calorific value of coal and the remainder is mostly low and moderate calorific value of coal or low rank coal. It is known that low rank coal is suitable for gasification process.3. Program and Progress of Coal Gasification in Indonesia

Program of coal gasification in Indonesia can be seen on Figure 3.1. The progress can be figured out as follows. Based on the laboratory scale results of investigation, gasification at the pilot plant scale had been successfully carried out at the tea plantation for drying tea leaves. The capacity of the gasification pilot plant is 50 kg of coal per day at Gambung West Java. Presently the another pilot plant of gasification has been developed to produce low Btu gas for substituting diesel oil fuel in the diesel generating power plant.4. Chronological Progress of Investigation of Coal Gasification in Indonesia

Actually the utilization of gas produced from coal had been carried out since the Dutch occupation era through gasification plant by using coal carbonization technology that produced coke besides town gas. The utilization of coal through gasification for tea leaf drying at the tea plantation has been conducted by RDCMCT at Gambung Ciwidey, West Java. Utilization coal through gasification is necessarily encouraged at large scale of production under the consideration with the reality that the large amount of low rank coal is available in the country, in the purpose of meeting the larger demand for fuel e.g. fertilizer plant. Material survey had been carried out by the Team of Coal Gasification of the Ministry of Energy and Mineral Resources of Indonesia in 1997-2001 in the purpose of taking inventory the characteristics of the Indonesian coals and the various world-wide technology of coal gasification, even the effort was enlarged on the possibility on utilizing coal bed methane that is very large available associated within the coal seam deposit. 4.1 Laboratory scale (at RDCMCT)Laboratory Scale of Indonesian Coal Gasification Using Fluidized Reactor (Figure 4.0). 4.2 Pilot plant scale at Gambung Tea Plantation (Figure 4.1)At the stage of pilot plant scale investigation on the tea leaf drying at the tea plantation, the production of 1 kg dry tea leaf requires 0.3-1.5 liter of subsidized diesel fuel. The component of fuel cost is around 11-20% and it depends on the type of tea leaf. The comparison of fuel utilization, if the diesel fuel is used of about 20 liters/hour, while by using coal is of around 40 kg/hour through gasification. By using coal will reduce the cost of 40%. The price of diesel fuel is of Rp. 513.37/liter (US$ 0.06/liter) and the price of coal is of Rp. 500/kg (US$ 0.056/kg). Based on the price of diesel fuel is of Rp.5,400/liter (US$ 0.6/liter) and coal is of Rp 500/kg, it looks likely that gasification of coal could be promising and competitive. The capacity of gasification unit is of 50 kg of coal per hour, where the capital investment of Rp. 200 million (around US$ 22,300) is required. 4.3 Pilot plant scale of synthetic gas for diesel generating power plant at Palimanan Cirebon West Java (Figure 4.2).Presently the pilot plant of gasification has been developed to produce low Btu gas for substituting diesel oil fuel in diesel generating power plant. The capacity is of 200 kg of coal per hour to produce low Btu gas of 2.88 million BTU per hour and it is able to supply a diesel generating power plant of 250 kVA by using fuel mix of 80-90% of synthetic gas and 20-10 % of diesel oil fuel for initiating ignition. 4.4 Future trendsCoal gasification is most likely prospective in the future, in consideration with the national energy policy and the ever increasing uneasiness on the environmental impact due to effect of coal burning emission. Moreover, besides as fuel, synthesis gas from coal can also utilized as raw material of various chemical industry, synthetic fuel oil, and synthetic natural gas (SNG). In lieu with the National Energy Policy, which directs the Indonesian coal utilization on clean coal technology application, the Agency for Energy and Mineral R & D Ministry of Energy and Mineral Resources would continuously carries out of making low calorific gas for small/moderate industry and generating power plant, and making moderate calorific gas for fuel or farther processed to produce synthesis gas (syngas), then it could be utilized as raw material of chemical industry, fertilizer, synthetic fuel oil, and synthetic natural gas.The other scale of gasification from the international world-wide has been studied and compiled by the Team of Coal Gasification of the Indonesia Ministry of Energy and Mineral Resources to support the efforts of enlarging coal gasification to support energy diversification in the country in the future.In 2009 it is expected that the first commercial plant would be developed and well-equipped with a continuous construction for ammonia, liquid fuel, hydrogen supply and other chemical production.It is programmed a utilization of synthesis gas to produce fertilizer under the cooperation between the Agency of R&D for Energy and Mineral Resource, the State-owned Fertilizer Company (PT. Pupuk Sriwijaya (PT. PUSRI)) and Japan (IHI & Sojitz) (Figure 4.3)5. International status of large scale coal gasification

International status of several large scale coal gasification can be seen on Figures 5.1 and 5.2. It may includes several processes as follows: Twin Ichikawa-Harima Heavy Industries Gasifier, commercial syngas plant and its application and its economic viability.6. Concluding remarks6.0 The utilization of low Btu gas produced from coal at the pilot plant scale has been conducted in the tea plantation for drying tea leaf. It is actually very promising technologically as well as economically, then it is necessary to socialize more intensive to the entrepreneurs who are interested to develop the plant at large scale of production by guaranteeing supply of coal sufficiently.6.1 The compensation of oil fuel subsidy elimination in the country should be given to both the poorer and last but not least to the program of energy substitution development of initiating its intensive utilization at transition era of fossil fuels or coal and oil and gas to satisfy the future national demand for energy.6.2 Outlook toward gasification of coal

If the effort of coal liquefaction of South Sumatra coal is cancelled due to its non-competitive price or the coal liquefaction of the other coal areas (East Kalimantan and South Kalimantan) is promising due to its closer location to the port or beach, then the South Sumatra coal could be utilized through either UBC or gasification.

In the case of gasification of South Sumatra coal, where the large State-owned Fertilizer Company is nearby located, is possible to carried out by using the world-wide conventional and commercial technology, e.g. in the USA used for steam power generating plant and producing other by-products such as sulfur, ammonia, etc., besides supplying gas for fertilizer industry in Indonesia.

References

1. BPPT , NEDO, Kobe Steel Ltd., Feasibility Study on Direct Liquefaction of Banko Coal in Indonesia, March 2002.

2. Ditjen Migas, 2000, Oil & Gas Staistik of Indonesia, 1996-2000, Jakarta.

3. Directorate of Mineral and Coal Enterprises, Coal, Directorate General of Geology and Mineral Resources, Ministry of Energy and Mineral Resources, Jakarta, July, 2003.

4. Heryadi, D, dkk, 2003, Pengembangan Gasifikasi Batubara, Litbang tekMIRA No.: 36.2003.

5. Miller, R.L., 1978, Intermediate Economics: Theory, Issues, and Applications, McRAW-Hill,Inc., USA.

6. Pusat Informasi Energi, Departemen energi dan Sumber Daya Mineral, Buku Pegangan Statistik Ekonomi Energi Indonesia 2002, Mei 2002.

7. Pusat Data dan Informasi Energi dan Sumaber Daya Mineral,2006,Ringkasan Laboran Kajian Blueprint Pengelolaan Energi Nasional 2005-2025, Jakarta.8. Pusat Informasi Energi, 2002, Prakiraan Energi Indonesia 2010, Departemen Energi dan Sumber Daya Mineral.

9. Soelistijo, U.W., 1984, Evaluation of the Potential economic Benefit of Coal-Oil Substitution in the Indonesian Economy: An Interindustry Approach, West Virginia University, University Microfilms International, MI 48106.

10. Soelistijo, U W, Suseno, T, Suherman, I, Tinjauan Ekonomi Pengembangan Briket Batubara Sebagai Salah satu Sumber Energi Alternatif BBM, Prosiding Kolokium Pertambangan dan Energi 2001, Bandung. (Dipublikasikan dalam Buku : Ekonomi Regional dan Model penerapannya: Pengembangan Sumber Daya Mineral dan Energi Dalam Rangka Otonomi Daerah di Indonesia, Puslitbang teknologi Mineral dan Batubara, ISBN 979-8641-31-0, 2003).

11. Soelistijo, Ukar W, Saepudin, R, Suseno, T, Palamba,S,Economic Evaluation of the NEDO (Japan)- BPPT (Indonesia) Feasibility Study on the Indonesia Banko Coal Liquefaction, 2002, The Proceedings of the 28th International Technical Conference on Coal Utilization 7 Fuel System, March 10-13, 2003, Clearwater, Florida, USA.12. Tim Gasifikasi Batubara, 2000, Laporan Gasifikasi Batubara Indonesia: Volume I 1997-1998, Volume II 1998-1999, Volume III 1999-2000,, Departemen Energi dan Sumber Daya Mineral.

Enclosures

PAGE 3