Indonesia and China have signed a memorandum of understanding (MoU) to conduct a feasibility study of a 560-million-U.S. dollar coal-to-methanol plant, according to a recent press release from Indonesia's Industry Ministry.
Held in Indonesia's capital Jakarta on Monday, the signing ceremony was attended by Industry Minister Agus Gumiwang Kartasasmita and representatives from PT Powerindo Cipta Energy (PT PCE) and China National Chemical Engineering Corporation (CNCEC).
"The cooperation to build a coal-to-methanol plant is very important for the industrial sector. The Industry Ministry really appreciates companies with a vision to initiate coal gasification projects and support this pioneering industrial investment plan," Kartasasmita said on Monday.
According to the press release, the plant was expected to be built in Meulaboh city situated in the country's westernmost province of Aceh.
With an investment value of 560 million U.S. dollars, the plant will process 1.1 million tons of coal into 600,000 tons of methanol per year.
"This project will absorb 600 to 700 workers. Based on the plan, the project will enter the construction stage in mid-2022," the minister said.