Kobe Steel Starts Upgrade Brown Coal Demo-plant in Indonesia

Kobe Steel announced on Wednesday Upgraded Brown Coal Demonstration Plant in Indonesia started the test operation to improve the quality of brown coal for power generation. The project, which is under Japan Coal Energy Center and supported by Ministry of Economy, Trade and Industry, is to operate 600 tonnes per day of plant through fiscal 2009 ending March 2010 and supply sample to Japanese power companies. Kobe Steel tries to commercialize the technology in fiscal 2010.

The inauguration ceremony is held on Thursday at the site in Satui, South Kalimantan. Top executives of Kobe Steel and Minister of Energy & Mineral Resources of Indonesia attend the ceremony.

Most of Indonesian brown coal is left unutilized due to the moisture content more than black coal. The project is to make the way to utilize the brown coal by removing moisture. The process is to heat crashed coal and light oil mixed slurry to remove moisture forming charcoal briquette after removing the oil. Kobe Steel started the development of the technology in 1993. The firm conducted 0.1 tonne per day of small laboratory test and 3 tonnes per day of demonstration test as national project of Japan and Indonesia by 2004.