East Kalimantan prepared to produce two million tonnes of methanol per year from coal

Samarinda (ANTARA) - East Kalimantan Province is preparing to produce two million tonnes of methanol per year through a National Strategic Project involving the gasification of low-caloric coal in East Kutai Regency.

“This downstream project is designed to process low-caloric coal commodities into methanol products that are highly needed by industry,” said the Head of the East Kalimantan Energy and Mineral Resources Department, Bambang Arwanto, in Samarinda on Thursday.

Bambang explained that the implementation of the coal gasification project is being developed in an integrated manner within the Batuta Chemical Industrial Park, Bengalon, East Kutability Regency.

The development of the methanol processing plant utilises an area of 93 hectares, with an investment value reaching Rp41.2 trillion.

The processing facility is projected to absorb a supply of low-caloric coal feedstock (3,400 kilocalories per kilogram) amounting to 7.7 million tonnes per year.

Non-specification coal commodities, which have historically had low market value, will be processed into liquid methanol products that meet the international standards of the International Methanol Producers and Consumers Association (IMPCA).

“The resulting methanol products will be utilised optimally as a blending component for fuel oil as well as a supply for the petrochemical industry,” said Bambang.