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News Release 2011
Business Info

24MAY2012 JCF®: Commercialization of new liquid fuel from low-rank coal

- Demonstration plant completed; demonstration run begins
  >> Read more about JCF® (JGC Coal Fuel)  

Yokohama JapanJGC Corporation announced that it has completed in Indonesia construction of a demonstration plant for the production of a liquid-type new fuel called JGC Coal Fuel (JCF®). An inauguration ceremony was held, attended by Indonesian and Japanese government officials, as well as JGC's business partners, at the plant site in Karawang, Indonesia, about 50 km east of Jakarta. Now in operation, the plant has a capacity of approximately ten thousand tons/year. This is a significant milestone for JCF® business development in Indonesia.

Indonesia--having the world's fourth largest population of approximately 240,000,000--is enjoying economic prosperity with an average annual growth rate of a little over 6%. Maintaining a stable energy supply is one of the country's top priorities for sustainable economic growth. However, the country's crude oil production has been declining, turning the nation into a net importer of oil since 2004. Indonesia is now increasingly reliant on coal as its primary energy source.

With this background, the Indonesian government is actively promoting the further utilization of domestic coal resources. In particular, it has placed importance on the effective use of low-rank coal, which represents about 80% of domestic coal production.

In order to contribute to the Indonesia's utilization of low-rank coal, JGC planned a project to establish a demonstration plant for the production of JCF® in Karawang, Indonesia. Construction of the plant began in September 2010 by JGC's subsidiary PT JGC Indonesia headquartered in Jakarta and was completed in November 2011, followed by test runs.

JCF® is produced using JGC's proprietary low-rank coal slurrification technology (upgrading low-rank coal and increasing its calorific value by hot water treatment, and processing upgraded coal into a liquid type fuel*). JCF® offers ease of transport and storage, as well as the same combustibility as heavy oil. Moreover, JGC aims to offer JCF at market prices 30%-50% lower than those of heavy oil.

JGC will operate the demonstration run through March 2014. During that time, the company plans to offer the experience gained from the production of JCF® from various kinds of low rank coal available in the country and combustion of JCF® to as many interested customers as possible, and will supply sample products on request. In parallel, JGC has been stepping up its efforts to obtain mining rights for low-grade coal by 2015, in addition to producing JCF®, and will open power generation businesses using JCF® in Indonesia.

The project was selected to receive funding support under the "International Cooperation Project for Verification and Demonstration of Clean Coal Technology", sponsored since 2010 by Incorporated Administrative Agency New Energy and Industrial Technology Development Organization (NEDO).

* Slurry fuel: mixture of coal and liquid ingredients.
JCF® is the resulting slurry made from mixing coal and water.


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