MEMR: Coal gasification a strategic step in energy transition

Jakarta – Coal gasification is now seen as a strategic step in supporting Indonesia’s energy transition. This was conveyed by the Director General of New Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (MEMR), Eniya Listiani Dewi, who emphasized the importance of coal entrepreneurs to start venturing into business in the green energy sector.

According to her, current investment trends show a significant increase in interest in renewable energy compared to fossil energy. Based on data from the Asian and Pacific Economic Review (APER), Eniya said that in the Asia-Pacific region, investment in the renewable energy sector has increased by 70 per cent compared to investment in fossil energy.

“Investment in renewable energy is currently greater than investment in fossil energy. If investment in fossil energy is worth 1, then investment in renewable energy has reached 1.7,” Eniya said in an official statement Thursday, August 22.

Seeing this trend, Eniya encouraged coal entrepreneurs to adopt coal gasification technology, such as dimethyl ether (DME) and hydrogen, or through emission management efforts such as carbon capture.

“If they can produce gas from coal or even do carbon capture, their companies will be greener,” he added.

In the context of the State Electricity General Plan (RUKN), Eniya reminded that coal consumption in Indonesia will continue to decrease until coal-fired power plants are finally stopped in 2050. This phase-out will align with the implementation of carbon capture technology, which is expected to be more affordable by 2040.

“We cannot continue to produce high emissions. If we don’t change, global investment could shift to other countries that are more environmentally friendly,” Eniya said.

According to him, while transitioning to green energy is challenging, coal gasification can be a profitable intermediate solution.

“Gas from coal will be a commodity that is absorbed by the market, especially since in this transition period, we are still relying on gas as an energy source before finally switching completely to battery energy. So, gasification is a step that is needed,” he said. (Hartatik)

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