Air Products, KPC Work on a US$2 Bln Coal Gasification Project

By Editorial Team 28/04/2022
Coal Mining
Summary

A unit of Indonesia’s biggest coal miner PT Bumi Resources Tbk (BUMI), and U.S. firm Air Products and Chemicals Inc will jointly invest in a methanol facility, an Indonesian minister and Bumi executive said on Wednesday. Bumi’s Kaltim Prima Coal (KPC) will build the facility in Bengalon, East Kalimantan, with an annual capacity to produce 1.8 million tons of methanol, director Dileep Srivastava told Reuters. He added the joint venture company would invest around US$2 billion all in.

Bahlil Lahadalia, Investment Minister/Chairman of Indonesia Investment Coordinating Board, said Bumi Resources and Air Products and Chemicals aim to break ground a coal gasification project in May, while Srivastava said the facility is expected to come online by 2025 or 2026. In 2020, Bumi Resources announced it had signed a definitive agreement with Bumi’s parent Bakrie Group and PT Ithaca Resources for a US$2 billion world-scale coal-to-methanol production facility.

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