Coal liquefaction plant expected in 2007

The Jakarta Post, Jakarta

The Agency for the Study and Application of Technology (BPPT) said on Wednesday it expected to be able to complete its coal liquefaction plant project in 2007.

The BPPT's coal liquefaction program manager Hartiniati Soedioto said that construction of the plant would start next year.

The plant is designed to transform coal into a liquid form that could act as a substitute petroleum and source of energy in the future as oil becomes scarcer.

The BPPT is collaborating with Japan's New Energy and Industrial Technology Development Organization (NEDO) to develop the technology and design the plant.

According to a BPPT-NEDO study, coal can be transformed through chemical processing into a synthetic fuel oil that is suitable for transportation.

The coal liquefaction plant will be located in the Banko area of South Sumatra.

The BPPT is designing three types of plants with respective capacities of 6,000 tons per day, 12,000 tons per day, and 30,000 tons per day.

The agency is also inviting private investors to participate in the project.

The BPPT said that the commercial operation of the plant would start in 2011.

Hartiniati expected the BPPT to be able to establish a group of domestic companies interested in pioneering the commercialization of coal liquefaction in Indonesia.