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Sasol to Study Viability of $10B Coal-to-Liquids Project in Indonesia

Jakarta Globe. Sasol and the Indonesian government have signed a preliminary agreement to study the viability of developing a coal-to-liquids facility project in Indonesia, with estimated project cost of more than $10 billion. If the project goes forward, Sasol said it may produce approximately 80,000 barrels per day of synthetic transportation fuel.

“The technology could help unlock Indonesia’s abundant coal reserves and would improve energy security by reducing dependence on imported fuels,” said Gita Wirjawan, the head of Indonesia’s Investment Coordinating Board (BKPM) ,who represented the government in the signing ceremony. “This is in line with Indonesia’s energy policy, which aims to diversify from oil to coal.”

Indonesia, formerly a member of OPEC, has become a net importer of oil due to rising domestic consumption and falling production. The country has an estimated 60 billion tons of coal reserves, according to the government. According to the US Energy Information Administration, Indonesia has 5.5 billion short tons of recoverable coal reserves, of which 85% is lignite and sub-bituminous.

In 2004, Indonesia produced 142 million short tons (MMst) of coal, up about 68 percent since 2000. Coal consumption has remained relatively flat in Indonesia, with 2004 consumption at 24 MMst. According to EIA statistics, Indonesia was the second largest net exporter of coal in the world in 2004, with 118 MMst of apparent net exports.


Henry Gibson

Any country with coal must start to make liquid fuels out of it rather than import oil. With all of the gas flaring and oil leaks and refining and other activities that release CO2 in the oil industry, it cannot be easily shown that Coal to Liquids produces an increase of CO2 in the air above ordinary oil refining. The CO2 produced at coal to liquids plants can be injected into oil fields permanently to increase production. ..HG..

Asogan Moodaly

Actually it can be easily shown. The net energy balance of a CTL plant ALONE(excluding transport to the retail stations and combustion in the car) is about 33% in terms of the energy required from coal vs the energy contained in the final product. A LOT of energy is used in the gasification process as well as the general utilities.


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