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Adaro chief questions math behind coal gasification projects
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PT Adaro Energy (Adaro) president director Garibaldi Thohir (Antara/Sigid Kurniawan)
G
aribaldi Thohir, president director of coal miner PT Adaro Energy Indonesia, has questioned the economic viability of projects to convert coal into dimethyl ether (DME) in Indonesia, one of the government’s many proposed downstream coal projects.
Garibaldi raised the doubts when asked about the substitute for natural gas at a media briefing on Thursday but said the firm would continue exploring possibilities and opportunities in the downstream coal industry.
"I don't understand how the math would [make DME projects feasible]. For example, if coal prices rose significantly, the calculation would not make sense," Garibaldi told reporters.
Read also: Air Products’ exit deals blow to RI’s downstream coal dreams
Indonesia has faced a series setbacks in realizing its goal of developing downstream coal industries, suffering a major blow with United States-based chemical company Air Products’ decision to pull out of all such projects in Indonesia.
Prior to its exit, Air Products had been working on several gasification projects, one to convert coal into DME and another to convert it into ethanol. The projects involved state-owned mining firm PT Bukit Asam (PTBA) and subsidiaries of PT Bumi Resources.
Experts say filling the hole that Air Products left would be difficult, with Belgium-based intelligence provider Energy Monitor writing in a 2022 report that Indonesia was unlikely to realize its large-scale gasification ambitions.
