Paper Title
Life Cycle Cost Analysis of Coal Water Slurry Process in Indonesia
Abstract
Coal is expected to take the position of crude oil as the largest primary energy contribution in the Indonesia
energy mixes in 2016 until 2050. Most of the coal resources are classified as low rank coal. Coal water slurry process with
upgrading, one of government’s energy programs, is a clean coal technology that utilizes low rank coal and produce a type of
slurry fuel with a higher heating value with more advantages than unprocessed coal to substitute MFO utilization. This study
provides an overview of the opportunities of coal water slurry implementation projections based on its life cycle cost then
make energy policy recommendations. Life cycle cost method was conducted to investigate coal water slurry commercial
plant with a capacity of 1,000,000 tonnes/year based on data from JGC Coal Fuel demonstration plant in Karawang, West
Java. Plant site was selected at Darmo Kasih Village, Gunung Megang, Muara Enim, South Sumatera. The total capital
investment was USD 325.6 million, the production cost was USD 120.4/tonne product and the price of the product was
determined at USD166/tonne to got the positive net present value. IRR was 16 % and payback period was 5.52 years of 15
years of service life. Coal water slurry product was more competitive or cheaper than MFO in terms of fuel cost in power
plants. Fuel cost of coal water slurry product was USD 520.4 million/year, and MFO was USD 644.2 million/year. Based on
the result of the study above, the coal water slurry process is feasible to be implemented with adequate infrastructure support
and special price fixing of low rank coal feedstock as energy policy recommendations.
Keywords- Low Rank Coal; Coal Water Slurry; Life Cycle Cost; Economic Feasibility; Competitiveness; Energy Policy