Despite COP26 pledges, Indonesia plans to expand coal production

  • 17 November, 2021
  • 5:52 pm EET

With the COP 26 climate summit ended days ago, and the resulting international pledges to reduce coal use in a step on the way to completely abandoning it, Indonesia is adopting a new plan to change the course of its use, although it is not in line with climate goals either.

The government is looking to achieve a significant increase in state revenues through the development of the country’s coal industry, and the industry’s revenues are expected to reach 136 trillion rupees ($9.57 billion).

The government believes that it may make more use of coal-derived products to replace some imported goods, which may reduce foreign imports, according to the Argus Media platform.


Huge Reserves Of Coal

The Indonesian Energy Ministry has said that coal mining could be one of the largest industries in the country, given Indonesia’s large coal reserves.

She pointed out that it has coal reserves of 39 billion tons, and resources estimated at 144 billion tons, but most of this coal is of low and medium quality, and thus achieves low prices.

The ministry also expected a decrease in the demand for coal in the future as a result of the increasing pressures to switch to renewable energy, and the closure of coal-fired power plants to reduce greenhouse gas emissions.

For this, the Indonesian Energy Ministry plans to convert coal from a fuel source for electricity generation to a carbon source for the production of chemical products and carbon raw materials.


Converting Coal Use

Indonesia is adopting a plan based on the development of coal gasification plants (the conversion of carbon into flammable compounds) that will produce synthetic gas important in the chemical industries, dimethyl ether, methanol and ammonia, along with proposals to develop plants for semi-coke and activated carbon.

Thus, Jakarta cheats on climate commitments. Instead of using coal in power plants, causing carbon emissions, the expansion of coal gasification plants to turn it into derivatives used in the chemical industries is also an environmentally harmful technology.

Environmental activists warn of the heat caused by gasification processes, and assert that the world is facing an environmental catastrophe that will be the largest on Earth, and that the temperature of the planet will rise more than current rates.


Higher Revenue

Coal gasification technology requires pumping oxygen instead of air to increase the amount of methane and reduce carbon dioxide at a temperature of 1500 degrees Celsius, and many gasification plants – currently – pump air instead of oxygen, and then produce carbon dioxide, which also causes emissions .

However, the Indonesian Ministry of Energy believes that these coal-derived products can add value to the commodity and increase the range of usable quality coal, which will allow the government to derive higher revenue from sales of raw coal.

“Indonesia’s coal industry will also boost domestic coal consumption, as domestic demand is less than production growth in all coal mining companies, but this gap can be closed by expanding coal derivatives,” according to Indonesia’s Ministry of Energy.




Reliable Trading since 2012