The utilization of Indonesia's low rank coal: Its potential, challenges and prospects

It has known that there are around 36 billion tons of coal resources potential in Indonesia, however over 21 billion tons (58.7%) is classified as low-rank (lignite) coal. Due to their properties, these coals are not economical to be transported for a long distance and are therefore unexportable. That's why these low- rank coals still underutilized at present. As the utilization of low-rank coals is expected to grow in importance as the domestic's demand for energy increases in the near future, efforts should also be directed to find the possible upgrading technology for low-rank coals by reducing the total moisture of it, once the possible upgrading technology has been adopted, then those coal can be converted into coal water mixture, coal liquefaction, gasification, briquetting, etc., even for mine mouth power plant. The challenges facing low-rank coals are : low conversion efficiency resulting from the high moisture content and relatively low in calorific values, the risk of spontaneous combustion, ash deposit formation and higher CO2 emission. To response to these challenges, the adoption of new and advanced technologies for the utilization of low-rank coals from the third countries is therefore required. Combined cycle technologies such as CFBC, PFBC and IGCC, etc. combined with coal up-grading technology are applicable to low-rank coals and are expected to become a major future power plant for Indonesia The main question for low-rank coals is whether these plants can be competitive when the extra costs involved in up-grading (drying) the coal ate taken into account.