Indonesia has signed a deal worth $15 billion with an American gas processing and chemical company to develop a coal gasification industry in the country, a government agency said.
The memorandum of understanding was signed between Indonesia’s Investment Coordinating Board (BKPM) and Air Products and Chemicals.
The deal was described as a “long-term investment agreement” aimed at converting “low-value coal into high-value-added chemical products” such as methanol, enabling Indonesia to move downstream from raw natural resources.
Air Products builds and operates industrial gas projects. The company will work with several Indonesian corporations including coal miner Indika Energy and state-owned Bukit Asam, with investments set to start early next year, BKPM chief Bahlil Lahadalia said.
One aspect of the project will convert natural gas into blue ammonia — ammonia that has been made through a process that produces low carbon dioxide emissions.