Energy Asia
Monday, August 8, 2022
  • Home
  • News
  • Oil & Gas
    • Petroleum
    • Natural Gas
  • Renewables
    • Solar
    • Wind
    • Hydropower
    • Wave and Tidal
    • Biofuels
  • Sustainability
    • Energy Efficiency
    • Energy Storage
    • Alternative Fuels
    • Fossil Fuel Transition
  • Energy Usage
    • Power Generation
    • Transportation
    • Energy Procurement
    • Energy Subsidies
  • Multimedia
    • Videos
    • Podcasts
  • Events
  • PR Newswire
  • Contact
No Result
View All Result
Energy Asia
  • Home
  • News
  • Oil & Gas
    • Petroleum
    • Natural Gas
  • Renewables
    • Solar
    • Wind
    • Hydropower
    • Wave and Tidal
    • Biofuels
  • Sustainability
    • Energy Efficiency
    • Energy Storage
    • Alternative Fuels
    • Fossil Fuel Transition
  • Energy Usage
    • Power Generation
    • Transportation
    • Energy Procurement
    • Energy Subsidies
  • Multimedia
    • Videos
    • Podcasts
  • Events
  • PR Newswire
  • Contact
No Result
View All Result
Energy Asia
No Result
View All Result
Home Sustainability Alternative Fuels

Indonesia Clings To Coal Despite Green Vision For Economy

by Team Energy Asia
September 20, 2021
in Alternative Fuels, Fossil Fuel Transition
Indonesia Clings To Coal Despite Green Vision For Economy
Share on FacebookShare on Twitter

Even as Indonesia wins cautious praise from some green groups for ambitious plans to cut carbon emissions, the world’s biggest exporter of thermal coal shows no sign of weaning itself off the polluting fuel any time soon.

Indonesia, the eighth-biggest carbon emitter, recently brought forward its goal for net zero emissions from 2070 to 2060 or sooner, ahead of the UN Climate Change Conference in Glasgow in November, and joined a U.S.-led Global Methane Pledge.

It also plans to stop commissioning new coal-fired power plants and phase out coal for electricity by 2056 under a new, greener long-term economic vision.

But — as with other coal producers such as Australia and India — Indonesia is wrestling with how to balance its environmental targets with the cost of pulling the plug on an industry that contributed US$38 billion in export earnings in the first seven months of 2021.

“We are phasing out coal power plants. But if you ask whether we’re closing down mines, we have the coal and there are other utilisation options,” Dadan Kusdiana, the energy ministry’s head of renewable energy, said.

The UN’s climate change report warned that global warming was dangerously close to being out of control in what has been described as “a death knell for coal and fossil fuels”.

Still, Indonesia is exploring ways to keep consuming and extracting value from coal by using carbon capture and storage (CCS) technology, although environmentalists say CCS is unproven and expensive.

Coal gasification 

With nearly 39 billion tonnes of reserves, coal remains the economic backbone of parts of Indonesia and miners are among the biggest taxpayers.

The government has been encouraging miners to invest in production of dimethyl ether (DME) from coal. Under new laws passed in 2020, it no longer requires them to pay royalties to the government on such processes, and their mine permits can be extended.

It has touted DME as a replacement for imported liquefied petroleum gas and a feed stock for chemicals and fertiliser.

Making DME requires burning coal, so it needs to be paired with CCS to be environmentally friendly, Dadan said.

However, if Indonesia can adopt CCS more widely and cheaply, the technology could also be applied to coal power plants, extending their usage, he said.

“This appears like a win-win move to accommodate all sides because they don’t dare to firmly shut down coal completely,” said Egi Suarga of the World Resources Institute Indonesia.

He said that although using CCS technology is feasible, there is risk of leakage in trying to capture emissions from burning and mining coal.

Record price

Coal power generation is Indonesia’s second-biggest emissions source after deforestation, contributing 35% of its 1,262 gigatonnes of CO2 equivalent a year, government data showed.

Indonesia consumes about 130 million tonnes of coal annually to fuel 60% of its 73 gigawatt (GW) electricity capacity, and exports about three times that amount.

Renewable sources like solar, hydro and geothermal make up just 11% of its energy mix, even though experts say Indonesia has 400 GW of renewable potential.

The government has pledged to increase the renewable share to 23% by 2025. Still, data from energy think-tank IEEFA shows that about 16 GW of new coal power capacity is expected to come online between 2021 and 2030.

“Because all the demand in Java and Bali has been met by coal, and there is even an oversupply, that is effectively killing renewable energy,” said Adhityani Putri, executive director of the Indonesia Cerah Foundation.

Coal power remains the cheapest option, costing about 600 rupiah (4.22 U.S. cents) per kilowatt-hour (kWh) last year, versus gas at about 1,600 rupiah per kWh and geothermal at 1,100 rupiah per kWH, the state utility data showed.

Cerah and other green groups have campaigned to retire coal plants early, but officials have said this could trigger fines for breaching contracts with independent power producers.

Meanwhile, coal prices hit all-time highs this year, helping Indonesia book record exports and a trade surplus in August. The government raised its 2021 coal output target by 14% to 625 million tonnes to cash in.

On the flip side, parliament is reviewing a government-proposed carbon tax, and Indonesia has ambitious plans to use its nickel reserves to become a production hub for batteries and electric vehicles.

As an archipelago, Indonesia is aware of its vulnerability to climate change, but policies must consider economic developments, including the future of coal and the jobs it provides, Finance Minister Sri Mulyani Indrawati said.

“If you don’t think about things like this, the people could get lost in all of these transitions and it could become a social problem,” she told Reuters, citing how anger over US coal mine closures created “populist” voters.

Source: Reuters
Tags: carbon emissionCoalenergyIndonesiapower generationPower PlantrenewableSoutheast Asia
Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Here’s How Wave Power Could Be Energy’s Next Big Leap

Here’s How Wave Power Could Be Energy’s Next Big Leap

April 20, 2021
Gogoro Battery Swapping Revolution in Taiwan – How It Happened

Gogoro Battery Swapping Revolution in Taiwan – How It Happened

August 23, 2021
The World’s Most Attractive Renewable Energy Market

The World’s Most Attractive Renewable Energy Market

August 2, 2022
Solar Energy

Solar Energy – Why Aren’t We Using A Lot More?

August 2, 2021
Tepco Seeks US$18 Billion Green Power Push

Tepco Seeks US$18 Billion Green Power Push

Saudi Arabia Lost the 2020 Oil Price War

Saudi Arabia Lost the 2020 Oil Price War

Electric Cars Are a Bright Spot Amid an Industry Hammered by COVID-19

Electric Cars Are a Bright Spot Amid an Industry Hammered by COVID-19

COVID-19 is Causing the Biggest Fall in Global Energy Investment

COVID-19 is Causing the Biggest Fall in Global Energy Investment

Strong Technical Advantages of TANK Platform, GWM TANK300 Will Bring a New Intelligent Off-road Experience

Strong Technical Advantages of TANK Platform, GWM TANK300 Will Bring a New Intelligent Off-road Experience

August 5, 2022

China Automotive Systems to Announce Unaudited 2022 Second Quarter Financial Results on August 12, 2022

August 5, 2022
GameChange Solar Announces 6 GW Midwest Tracker Factory, Increases USA Capacity to 14 GW

GameChange Solar Announces 6 GW Midwest Tracker Factory, Increases USA Capacity to 14 GW

August 5, 2022
<div>LONGi Central R&D Institute kickstarts operation in Xi'an</div>

LONGi Central R&D Institute kickstarts operation in Xi’an

August 5, 2022

Energy Asia brings you the latest news, analysis and insights for the energy sector. From oil and gas and geopolitics, to renewables and environmental issues, we cover energy-related news in Asia and beyond.

Categories

  • Alternative Fuels
  • Biofuels
  • Climate Change
  • Energy Efficiency
  • Energy Procurement
  • energy risks
  • Energy Storage
  • Energy Subsidies
  • Energy Usage
  • Features
  • Fossil Fuel Transition
  • Geothermal
  • Hydrogen
  • Hydropower
  • Natural Gas
  • net zero emissions
  • New post
  • News
  • Nuclear Power
  • Oil & Gas
  • Petrochemicals
  • Petroleum
  • Power Generation
  • prnewswire-feeds
  • Renewables
  • Solar
  • Sustainability
  • Transportation
  • Uncategorized
  • Wave and Tidal
  • Wind

Newsletter

Subscribe to our mailing list to receives daily updates direct to your inbox!

© 2022 Business Media International. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Oil & Gas
    • Petroleum
    • Natural Gas
  • Renewables
    • Solar
    • Wind
    • Hydropower
    • Wave and Tidal
    • Biofuels
  • Sustainability
    • Energy Efficiency
    • Energy Storage
    • Alternative Fuels
    • Fossil Fuel Transition
  • Energy Usage
    • Power Generation
    • Transportation
    • Energy Procurement
    • Energy Subsidies
  • Multimedia
    • Videos
    • Podcasts
  • Events
  • Contact

© 2022 Business Media International. All Rights Reserved.