Fertilizer Production based on Coal Gasification

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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Indonesia Natural Gas Balance
2012 - 2025
NERACA GAS BUMI INDONESIA 2012-2025
10.000
MMSCFD
8.000
6.000
4.000
2.000
0
2012
2013
CONTRACTED DEMAND
2014
2015
2016
COMMITTED DEMAND
2017
2018
POTENTIAL DEMAND
2019
2020
EXISTING SUPPLY
2021
2022
PROJECT SUPPLY
2023
2024
2025
POTENTIAL SUPPLY
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
potency
production
Source: Ministry of Energy and Mineral Resources – 2011
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Indonesia Coal Quality Distribution
Source: Ministry of Energy and Mineral Resources – 2012
Sumatera Coal Basin
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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
Proposed Location
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TANJUNG ENIM MINE
Pekan Baru
Padang
Peranap
Teluk Bayur
Ombilin
Kertapati
Palembang
Tanjung Enim
Lampung
Tarahan
Jakarta
Samarinda
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Feasibility Study Schedule
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