India seeks cooperation over Indonesia’s UCG technology

The Indian government has expressed interest in underground coal gasification (UCG) technology developed by the Indonesian Ministry of Energy and Mineral Resources’ Center for Mineral and Coal Technology Development and Research (Puslitbang Tekmira).

This was previously revealed in an online meeting held by the Indian Coal Ministry by inviting the Indonesian Ministry of Energy and Minerals along with several state-owned Indian coal mines, including Coal India Limited and several of its subsidiaries.

The Indonesian ministry stated recently that India has asked for cooperation with Tekmira in trial implementation of the UCG technology in two locations, namely West Bengal and Raniganj. The statement added that Tekmira is currently waiting for geological data of the two locations.

Indonesia and India have similarities in the proportion of fossil energy reserves, namely having coal reserves far greater than oil and gas reserves. Therefore, the implementation of the technology for converting coal to gas, liquid fuel and feedstock for the petrochemical industry is important to maintain national energy security. The implementation of UCG technology is expected to contribute to increasing energy availability, conserving natural resources and reducing energy costs.

Following the discussion, Peeyush Kumar, Director of Technology at the Indian Coal Ministry, asked Tekmira to collaborate by supervising the development and testing of UCG at the two locations in West Bengal and Raniganj Coalfield. India will send geological data on the UCG location plan to be evaluated by Tekmira and to make UCG development phases in that location.

In the Indonesian ministry’s release, it was explained that the UCG technology method itself involves gasification underground through two bore wells. One well serves as a medium for air/oxygen injection and the other functions as a production well. This technology is claimed to reduce environmental problems, optimize uneconomic coal utilization and make it possible to cover the shortage of energy supply from oil and gas.

In all, this technology will extract and convert coal below the surface into synthesis gas (Syngas) in situ. This unconventional technology does not require excavating overburden and coal seams first.

Apart from being able to be used as fuel for power plants, this unconventional technology also produces syngas for various purposes such as petrochemical industrial chemicals (ammonia, methanol, etc.) and the manufacture of synthetic fuel and industrial chemicals. UCG also produces carbon dioxide (CO2) as an enhancing oil recovery (EOR) material to increase national oil production. UCG syngas production costs are cheaper than LNG imports.

UCG technology helps coal companies use deep seam coal, which is not economically feasible to mine. Lower capital and operating costs compared to surface coal gasification. Companies can also reduce environmental impact as well as reclamation and post-mining costs because they don’t change the landscape.

The Indonesian ministry said that Tekmira had conducted trial implementation of the UCG technology in South Sumatra in 2019, and had also implemented pre-feasibility study in East Kalimantan. The study will be continued this year by developing eight underground water monitoring wells, in the hope that the first commercial UCG facility in Indonesian can start operation by 2023.


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