Air Products (AP) recently announced it has signed a definitive agreement for a long-term on-site contract for a world-scale coal-to-methanol (CTM) production facility in Bengalon, East Kalimantan, Indonesia.

Under the long-term on-site contract, AP will invest about US$2 billion to build, own and operate the air separation, gasification, syngas clean-up, utilities and methanol production assets.

This facility will enable nearly two million tons per year (TPY) of methanol to be produced from nearly six million TPY of coal. The project is expected onstream in 2024.

Seifi Ghasemi, AP’ chairman, said, “Indonesia is committed to reduce its energy imports and efficiently convert abundant coal resources into high-value products. We will deploy our capital, technology and operational expertise to help Indonesia meet these important goals.”