Energy Ministry: DME Production Cost Reaching US$389-US$420 Per Ton

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Summary

The Energy and Mineral Resources Ministry (ESDM), in its last study, stated that the Dimethyl Ether (DME) production cost is in the range of US$389-US$420 per ton. According to the Energy and Mineral Resources Ministry's Director of Coal Development and Business Sujatmiko, the price was formed after taking into account four cost components, consisting of coal purchasing costs of around US$19-US$21 per ton, DME processing service fee, outside battery limit (OSBL), and risk costs.

With that production cost, the ministry estimates that the price of DME products will be in the range of US$400-US$420 per ton. "From this existing scheme, it is estimated that the eight-year project has a payback period with an internal rate of return [IRR] of around 9.3-10.5 percent," Sujatmiko said in a webinar on Tuesday (3/9).

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