Economic Analysis of Coal Gasification Plant for Electricity and Thermal Energy Supplies in Indonesia

Abstract

Development of coal gasification plants in Indonesia for electricity and thermal energy supplies has been started officially since 2011. So far, two gasification technologies have been selected for demonstration, including two-stage updraft fixed-bed (Plant A) and twin-fire fixed bed gasifier technologies (Plant B). Economic analysis for electricity generation cost, selling price (with achieve ROI = 11% and 4 year loan installment) and tariff (with transmission cost added) as well as syngas generation cost and selling price was conducted based on these two technologies. The calculated electricity generation cost are 0.189 and 0.204 US$/kWh, electricity selling price are 0.273 and 0.352 US$/kWh and electricity tariff are 0.279 and 0.358 US$/kWh for Plant A and B, respectively. Thermal energy is supplied as synthetic gas (syngas). The calculated syngas generation cost are 0.322 and 0.340 US$/Nm 3 and syngas selling price are 0.38 and 0.512 US$/Nm 3 , for Plant A and B, respectively. The analysis also shows that, based on the studied scenario, the selling prices of electricity from coal gasification are competitive when compared to that from diesel oil (i.e. 0.375 US$/kWh) but much less competitive when compared to that natural gas (i.e. 0.0864 US$/kWh). The selling prices of syngas is also higher than that of Liquefied Petroleum Gas (LPG) (i.e. 0.238 US$/Nm 3).