Air Products to build $2bn coal-to-methanol production facility in Indonesia
May 18, 2020 – Industrial gases company Air Products has agreed to invest $2bn in the construction of a coal-to-methanol production facility in Indonesia.
Two companies including PT. Bakrie Capital Indonesia and PT. Ithaca Resources have signed a long-term on-site contract with Air Products to supply the coal feedstock and have committed to offtake the methanol production, to be sold in the country.
Air Products chairman, president and CEO Seifi Ghasemi said: “As Southeast Asia’s largest economy, Indonesia is committed to reduce its energy imports and efficiently convert abundant coal resources into high-value products.
“We are proud to have been awarded another world-scale gasification project, where we will deploy our capital, technology and operational expertise to help Indonesia meet these important goals. This is another example of our long-term strategy to deploy capital into high-return strategic industrial gas projects.”
With support from the supply and offtake agreement, Air Products will build, own and operate the air separation, gasification, syngas clean-up, utilities and methanol production assets to produce methanol for the two Indonesian companies.
The facility will use Air Products’ Syngas Solutions dry-feed gasifier, which is claimed to enable the production of nearly two million tons per year (TPY) of methanol from nearly six million TPY of coal. The project is expected to come online in 2024.
PT. Bakrie Capital Indonesia CEO Adika Nuraga Bakrie and PT. Ithaca Resources’ president director Agoes Projosasmito said: “We’re very proud to collaborate in this strategic project with Air Products, the world leader in coal gasification. In line with President Joko Widodo and the Government of Indonesia’s plan, there is strong momentum for this project, which will produce high-value methanol from abundant, low-value coal reserves.
“Furthermore, we are very encouraged by the Government’s support for developing cutting edge technology and products in the Eastern Region, which will contribute to the overall sustainable economic development of Indonesia.”
Recently, Air Products secured a long-term on-site supply contract from a printed circuit board (PCB) and contract manufacturer in China.
As per the contract, Air Products will add one large-volume high purity nitrogen (HPN) generator to support the PCB maker’s expansion in Northern China.
In addition to the gas supply, the company had also agreed to provide its NitroFAS Intelligent Nitrogen Control System (INCS) units and related application solutions developed at its Asia Technology Center in Shanghai.