Fertilizer Production based on Coal Gasification

Presented by Benny Haryoso

Technical and Development Director PT Pupuk Sriwidjaja Palembang

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PT Pupuk Indonesia (Persero)

• PT Pupuk Indonesia (Persero) is government owned fertilizer holding company. PT Pupuk Indonesia have five fertilizer companies across Indonesia as its subsidiary. Those companies are PT Pupuk Sriwidjaja Palembang, PT Pupuk Kaltim, PT Pupuk Kujang Cikampek, PT Petrokimia Gresik, and PT Pupuk Iskandar Muda. PT Pupuk Indonesia also has subsidiaries outside fertilizer business. Those companies are PT Rekayasa Industri, EPC Contractor, Mega Eltra, trading company, and PT PI Logistik, Shipping company

• With total capacity of 19 million tons of fertilizer per year, PT Pupuk Indonesia is the largest fertilizer producer in South East Asia.

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PT Pupuk Sriwidjaja Palembang

• Established in 1959, PT Pupuk Sriwidjaja Palembang is the oldest urea producer in Indonesia. It started with an urea plant with a modest capacity of 100,000 MTPY in 1961 and now have a combined capacity of over 2 million tons per year. PT Pupuk Sriwidjaja Palembang currently constructing Pusri IIB plant, a new ammonia – urea plant with a capacity of 907.500 MTPY scheduled to start operation at the end of 2015.

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Indonesian Ammonia Outlook

Source: Fertecon Ammonia Outlook - June 2014

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Indonesian Urea Outlook

Source: Fertecon Urea Outlook - June 2014

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Natural Gas and Urea Production

• Currently all of urea plants in Indonesia using natural gas both as a feedstock and fuel. Some of the plants have begun switching to coal to generate power and steam.

• Although natural gas is the cleanest and the most convenient feedstock to produce urea, natural gas is the world’s fastest growing fossil fuel, with consumption increasing from 113 TCF in 2010 to 185 TCF in 2040. (IEA Energy Outlook 2013)

• Indonesia facing declining natural gas production from many older fields and must make substantial investment to maintain current production levels.

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2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

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NERACA GAS BUMI INDONESIA 2012-2025

CONTRACTED DEMAND COMMITTED DEMAND POTENTIAL DEMAND EXISTING SUPPLY PROJECT SUPPLY POTENTIAL SUPPLY

Indonesia Natural Gas Balance 2012 - 2025

Source: Ministry of Energy and Mineral Resources – 2012

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Driving Force

• Supply security – depleting supply and increasing price of natural gas

• To increase production capacity and or efficiency to meet fertilizer demand or to lower production cost

• The abundance of low rank coal reserve in South Sumatera. South Sumatera has the highest coal reserve in Indonesia

• Government regulation to ban export of low rank coals (UU No.4/2009)

• President regulation to increase the utilization of coal to 33% in national energy mix in 2025 (Perpres no.5/2006)

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Indonesia Coal Distribution

Source: Ministry of Energy and Mineral Resources – 2011

potency

production

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Indonesia Coal Quality Distribution

Source: Ministry of Energy and Mineral Resources – 2012

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Sumatera Coal Basin

Source: Ministry of Energy and Mineral Resources – 2011

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Coal Gasification Development Progress

• Currently, PT Pupuk Sriwidjaja Palembang is conducting a joint feasibility study on Ammonia and Urea plant based on coal gasification with PT Bukit Asam, state-owned coal mining company. The capacity of the plant will be 1500 TPD ammonia and 2600 TPD urea.

• The study was conducted to find the most suitable technology and the economic feasibility of the future project

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Coal Gasification Development Progress

• The study will be based on South Sumatera low rank coals (4200 kcal/kg, 41% TM, 8,2% ash)

• The study will cover technology evaluation, location evaluation, transport study, preliminary project planning and scheduling, project cost estimating, operation and maintenance cost, market review, etc.

• The study was planned to be completed by the end of this year

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Coal Gasification Development Progress

• PT Pupuk Kujang Cikampek is having an agreement with IHI to develop 50 tpd TIGAR gasification demo plant in Cikampek.

• TIGAR is fluidized bed gasification technology developed by IHI to gasify low rank coals.

• The demo plant was scheduled to finish construction at Q3 2014. the demo plant will be operating until end of 2016 using Indonesian lignite coals as feedstock.

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Coal Gasification Development Progress

• Based on earlier feasibility study conducted in 2011, if old plants under Pupuk Indonesia to be replaced with new plants based on coal gasification, total coal required both for feedstock and fuel is about 12,13 million MTPY of lignite coals

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Terima Kasih

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Pro

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cati

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Palembang

Padang

Samarinda Pekan Baru

Tanjung Enim

Lampung Jakarta

Tarahan

Kertapati Ombilin

Teluk Bayur

Peranap

TANJUNG ENIM MINE

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Feasibility Study Schedule

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