Air Products investing $2bn in landmark coal-to-methanol project in Indonesia


Air Products will invest $2bn to build a coal-to-methanol production facility in Indonesia.

Under a long-term on-site contract with PT. Bakrie Capital Indonesia and PT. Ithaca Resources, the US industrial gas giant will build, own and operate the air separation, gasification, syngas clean-up, utilities and methanol production assets to produce methanol for Bakrie and Ithaca.

Located in Bengalon, East Kalimantan, this facility – including Air Products’ proprietary Syngas Solutions™ dry-feed gasifier – will enable nearly two million tons per year (TPY) of methanol to be produced from nearly six million TPY of coal. The project is expected onstream in 2024.

Bakrie and Ithaca will supply the coal feedstock and have committed to offtake the methanol production for sale within Indonesia.

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