Air Products to invest up to $2bn in coal-to-methanol production facility in Indonesia

The plant is expected to produce two million tonnes of methanol annually

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American gas and chemical supplier Air Products is set to invest up to $2 billion (£1.6bn) in a coal-to-methanol production facility in Indonesia.

Investment holding company PT. Bakrie Capital Indonesia and coal infrastructure company PT. Ithaca Resources will supply coal to the facility and sell the produced methanol within Indonesia – Air Products will build, own and operate the methanol production assets.

The production plant is expected to produce two million tonnes of methanol annually.

Seifi Ghasemi, Chairman and CEO at Air Products, said: “As Southeast Asia’s largest economy, Indonesia is committed to reduce its energy imports and efficiently convert abundant coal resources into high-value products.

“We are proud to have been awarded another world-scale gasification project, where we will deploy our capital, technology and operational expertise to help Indonesia meet these important goals.”

The project is expected to begin in 2024.

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