Indonesia looks at coal liquefaction

A consortium comprised of 11 of Indonesia’s coal mining companies and the Indonesian government aim to begin a six-month feasibility study for the country’s first coal liquefaction plant, the Jakarta Post reported. Indonesia is reportedly expecting the study to be paid for by a US$500,000 grant from Japan Bank for International Cooperation (JBIC). At the moment, Arutmin is the tentative coal supplier to the plant. The plans call for the plant to consume 2.5 million tons per year of coal to produce 13,500 barrels per day of liquid fuels. Indonesia, one of the world’s top coal exporters, holds coal deposits of around 40 billion tons, but around 60% is low quality. (July 25, 2007)