Kusumahbrata /ICG 2015 9 Coal Clean Technology Policy to Safeguard National Energy Security and Environment Sustainability Yunus Kusumahbrata Ministry of Energy and Mineral Resources Abstract National Energy Policy (KEN) determine the important role of coal as primary energy for coal-fired power plant (CFPP) within national energy mix, accounted for 30% in 2025 and 25% in 2050. Improving the electrification ratio in remote areas, including small isolated islands, villages along border areas, Papua etc. has become the major concern of government. At the present time, however, the unbalance supply and demand of electricity leads to energy crisis in at least 9 PLN’s distribution system areas. To keep pace with the ever increasing electricity demand, Indonesia has no other alternative except to build CFPP and utilize its national coal reserve safeguard national energy security. As the consequences of using CFPP there would be an increase of green house gas (GHG’s) emissions. On the other hand, Indonesia has also had a strong international committment to reduce its GHG’s emissions based on signed Pittsburg G-20 and COP 15 documents, therefore, in order to fulfill both important objectives, an appropriate policy of CFPP implementation should be delivered accordingly. This paper will discuss the policy and also briefly about implementation of clean coal technology (CCT) for various types of coal in order to reduce GHG’s emissions. Demand Side of Energy Indonesia is endowed with great natural mining- based resources including oil & gas, metalic and non metalic minerals, coal, geothermal and others. In terms of coal production, Indonesia was the world’s largest exporter of thermal coal in 2014. Its tin production was ranked second globally in 2013, and in the same year it was recorded the world’s top five producers of copper and nickel and top 10 producers of gold and natural gas. As predicted by McKinsey Global Institute in 2012, Indonesia with its demographic and geographic comparative advantages is on the way to become the world's 7th largest economy by 2030. The report cites that the country's young population, growing up of new mid level consumer class and the rapid urbanization of cities as reasons that will elevate Indonesia's $850 billion economy up nine spots from its current place of 16th largest economy globally. As a consequence, demand for energy, materials, water and other key resources are likely to increase rapidly. To response such huge demand, from the energy mixed perspective, in the next 35 years, the total demand of energy will be raised more than 5 times, energy consumption per capita will be 4 times higher, power generation needed will be more than 8 times, whereas electricity consumption per capita jump extremely to almost 9 times from now. At the time being with population growth 1.2%/year, Indonesia’s electricity demand is increasing around 7-8% /year concurrent with a relatively high national economic growth accounted for 5-6% /year. The sufficient supply of electricity is not only needed to increase national electrification ratio, but more importantly the sustainable supply of energy will directly determine economic growth. Therefore, sufficent energy supply will guarantee the increase of electrification ratio, attracting investment on industrial development and hance flavour the long term steady state of national economic growth (Fig. 1 & 2). Existing condition shows that a relatively low and uneven distribution of electrification ratio in the Eastern Part of Indonesia, especially Papua, has become major challenge to be solved (Fig. 3 & 4).
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Coal Clean Technology Policy to Safeguard National EnergySecurity and Environment Sustainability
Yunus KusumahbrataMinistry of Energy and Mineral Resources
Abstract
National Energy Policy (KEN) determine the important role of coal as primary energy for coal-fired power plant(CFPP) within national energy mix, accounted for 30% in 2025 and 25% in 2050. Improving the electrification ratioin remote areas, including small isolated islands, villages along border areas, Papua etc. has become the majorconcern of government. At the present time, however, the unbalance supply and demand of electricity leads to energycrisis in at least 9 PLN’s distribution system areas. To keep pace with the ever increasing electricity demand,Indonesia has no other alternative except to build CFPP and utilize its national coal reserve safeguard nationalenergy security. As the consequences of using CFPP there would be an increase of green house gas (GHG’s)emissions. On the other hand, Indonesia has also had a strong international committment to reduce its GHG’semissions based on signed Pittsburg G-20 and COP 15 documents, therefore, in order to fulfill both importantobjectives, an appropriate policy of CFPP implementation should be delivered accordingly. This paper will discussthe policy and also briefly about implementation of clean coal technology (CCT) for various types of coal in order toreduce GHG’s emissions.
Demand Side of Energy
Indonesia is endowed with great natural mining-based resources including oil & gas, metalic andnon metalic minerals, coal, geothermal andothers. In terms of coal production, Indonesiawas the world’s largest exporter of thermal coalin 2014. Its tin production was ranked secondglobally in 2013, and in the same year it wasrecorded the world’s top five producers ofcopper and nickel and top 10 producers of goldand natural gas.
As predicted by McKinsey Global Institute in2012, Indonesia with its demographic andgeographic comparative advantages is on theway to become the world's 7th largest economyby 2030. The report cites that the country'syoung population, growing up of new mid levelconsumer class and the rapid urbanization ofcities as reasons that will elevate Indonesia's$850 billion economy up nine spots from itscurrent place of 16th largest economy globally.As a consequence, demand for energy, materials,water and other key resources are likely toincrease rapidly. To response such huge demand,
from the energy mixed perspective, in the next35 years, the total demand of energy will beraised more than 5 times, energy consumptionper capita will be 4 times higher, powergeneration needed will be more than 8 times,whereas electricity consumption per capita jumpextremely to almost 9 times from now.
At the time being with population growth1.2%/year, Indonesia’s electricity demand isincreasing around 7-8% /year concurrent with arelatively high national economic growthaccounted for 5-6% /year. The sufficient supplyof electricity is not only needed to increasenational electrification ratio, but moreimportantly the sustainable supply of energy willdirectly determine economic growth. Therefore,sufficent energy supply will guarantee theincrease of electrification ratio, attractinginvestment on industrial development and hanceflavour the long term steady state of nationaleconomic growth (Fig. 1 & 2). Existingcondition shows that a relatively low and unevendistribution of electrification ratio in the EasternPart of Indonesia, especially Papua, has becomemajor challenge to be solved (Fig. 3 & 4).
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Fig. 1: Indonesia’s energy mix perspective
Fig. 2: Road Map of Indonesia’s Energy Mix-2050
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Fig.3: Growth of national electricity demand
Fig.4: Realization and target of national electrification ratio
Supply Side of Energy
At the present time, shortage of electricitysupply within 9 network distribution systems ofState Electricity Company (PLN) has remain achallenge to be tackled. Concerning the everincreasing energy demand, GoI has launched the
ambitious program to produce additional 35 GWelectricity supply up to 2019 to fulfill the needand safeguard the national energy security. Theproject is expected to push annual economicgrowth up to 6.7 percent. In order to make the 35GW usable, however, power demand must growby 8.8% annually and electrification ratio has tobe around 97.4%. Considering the availability ofnational resources and unavailability of other
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energy alternatives, coal will then be used asprimary energy resources for the project.
Policy for the Utilization of Coal Resources
According to the road map of energy supply andconsidering of its resources availability, coal willbe used as the main supplier to national energy.In terms of resources and reserve of 2014,Indonesia possesses 125 BT resources and 33BT reserve of coal respectively which mainlydiscovered in Sumatera (55%) and Kalimantan(45%) (Figs. 5 & 6). Its general quality isreflected in their rank distribution: lignite – 58%;sub-bituminous – 27%; bituminous – 14%; andanthracite <0.5%.If the use this national coal reserve at the rate of400 MT per year, it will approximately last forabout 85 consecutive years. Holisticunderstanding of Indonesia’s coal characteristicsis important in order to draw strategic planningof the resource, including how to building up
coal-fired mine-mouth power plant that requiresdetailed information of coal resource. Forexample, several types of coals have beenidentified throughout the country with differentcharacteristics including rank, calorific value,moisture and ash content, volatile matter andfixed carbon content. Based on its rank orcalorific value as the most important measurethere are 4 types of coal are identified, such ascoal with very high-, high-, medium- and lowcalorific values. The medium- and low calorificvalues of coals are the most abundant coals inIndonesia. The medium-, to low rank coalsusually possesses a significant amount ofmineral matter that can produce GHG’s duringcombustion if not treated accordingly. In termsof energy diversification, low rank coal will beprioritized for mine-mouth power plant, gasifiedand liquified coals, whereas high rank coal willmainly be used to meet the demand of nationalpower generation backbone.
Fig. 5: Distribution of major national coal resources in Sumatera and Kalimantan
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Fig. 6: Indonesia’s coal resource and reserve and its quality proportion
Policy on the utilization of Clean CoalTechnology
The GoI fully aware if coal is going to be usedas primary energy resource for building up“coal-fired power plant”, the produced greenhouse gases emission will increase and hence ithas to be controlled. The IntergovernmentalPanel on Climate Change (IPCC) has confirmedand warned that unless the global societyworking together to take immediate and drasticaction to reduce CO2 emission, average globaltemperature is likely to rise by 2,4oC – 6.4oC by2100. If we fail to keep it below 2oC devastatingand irreversible – climate change will occur.This needs reducing CO2 – equivallentemissions at least 50% by 2020.
Responding to the global campaign to combatGHG emissions, Indonesia will be responsible tokeep the committment of GHG’s emisions asstated during G-20 Pittsburg and COP 15Summits according to the Road Map of NationalAppropriate Mitigation Actions (NAMA’s)beyond the year 2020 (26% or 967 milliontonnes with national effort or 41% withinternational support). However, with energydemand expected to double by this date andrenewable energy only capable to make up 30%of the energy mix, an introduction of special
portofolio of solutions should be done to be ableto achieve this goal. Several most importantprograms to combat GHG’s emissions is toinclude the effort for improving greater energyefficiency, a vast increase in renewable energyand CO2 capture and storage by implementingcomplete CO2 value chain, from the capture ofCO2, its transportation to storage sites, to itsinjection into geological formations deepunderground.
GoI has launched regulation for the utilization ofcoal including its minimum 30% contribution onenergy mixed in 2025, and minimum 25% onenergy mixed in the year 2050 but its role willalso be capped to maximum 50% in the year2050. Coal will be used primarily for energy inpower industry and feed-stock in otherindustries, while liquified coal will be utilizedfor transportation sector and more advance CCTon CFPP in the future.
In order to control and reduce GHG’s emission,Indonesia has set up a target and strategicplanning to provide sufficient, reliable andaffordable electricity supply to safeguard itsrelatively high and steady economic growth.One of its strategic program is to implementprogressive policy for building up coal-firedpower plant using Clean Coal Technology(CCT) (Fig. 7). During period 2015 - 2024, theUltra Super Critical (USC) combine cycle
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power plant is promoted as an advancetechnology of CCT including Sub-Critical- andUltra Super Critical Combine Cycle (USC). Themore advance CCT known as IntegratedGasification Combine Cycle (IGCC) has to betechnologically proven becomingcommercialized to achieve low electricity costs
& low GHG’s emission. The IGCC technologyis undergoing testing with promising result to bedeveloped beyond 2024, especially on theutilization of low rank coal with low ash meltingpoint (Fig. 8).
Fig. 7: Advantages of CCT implementation for USC and IGCC
Fig. 8: Road map of CCT for CFPP development in Indonesia
Conclusion1. To meet the rapidly growing energy
demand and to overcome shortage ofelectricity supply, coal-based generationelectricity power plant provides a quickand low-cost solution in Indonesia.However, CFPP contributes to theincrease GHG’s emissions.
2. Reducing GHG’s emission whilekeeping expanding power productionand enhancing energy security has to beachieved. Government of Indonesia has
to set up Policy and Regulationconcerning the utilization of CCT to beable to find a potential solution toachieve dual goals with respect to powersector development/energy security andenvironmental sustainability.
3. Holistic understanding of Indonesia’scoal characteristics is important in orderto draw a strategic planning of theresource related to expansion of CFPP,including detailed information about
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coal resource to building up mine-mouthCFPP.
4. USC is commercially matured, alreadyproven and well performed in manycountries. It can use low rank coalhaving above average ash melting point,has economic merit to Sub Critical andSC CFPP and also produces lower CO2emission.
5. IGCC is a promising technology, yet notcommercially matured, can use low rankcoal with low ash melting point, itsproject cost is expected to drop andmake it economical compared to SC andUSC, lower CO2 emission than SC andUSC.
References
Belkin, H.E & S.J. Tewalt, 2007. Geochemistry ofSelected Coal Sample from Sumatera,Kalimantan, Sulawesi and Papua,Indonesia. USGS Open File Report 2007-1202, 49 pp.
Japan Coal Energy Center, 2005. High EfficiencyPulverized Coal-fired Power GenerationTechnology (Ultra Super Critical SteamCondition), Coal-fired GenerationTechnologies, Clean Coal in Japan, p. 23-24
JICA Study Team, 2011. The Project forPromotion of Clean Coal Technology(CCT) in Indonesia, Interim Report,Jakarta.
