Feasibility Study of Coal Gasification Business into Dimethyl Ether (DME) with Cost Benefit Analysis (CBA) Method to Support National Energy Security
DOI:
https://doi.org/10.37385/ijedr.v6i2.7430Keywords:
Coal Gasification, Dimethyl Ether (DME), Cost-Benefit Analysis (CBA), Energy Transition, Emission ReductionAbstract
The coal gasification project for Dimethyl Ethane (DME) in Indonesia offers great potential to support the energy transition by reducing dependence on energy imports, saving the country's foreign exchange, and contributing to reducing greenhouse gas emissions. Through a Cost-Benefit Analysis (CBA), this study assesses the economic feasibility and environmental consequence of the project, focusing on investment costs, foreign exchange savings, emission reductions, and job creation. Although the project promises significant benefits, key challenges include high investment costs, dependence on foreign technology, and the sustainability of environmentally friendly coal supplies. Therefore, the project's success is highly dependent on supportive policies, such as fiscal incentives, public-private partnerships, and strengthening domestic technology research, which can ensure a cleaner and more sustainable energy transition in Indonesia.
References
Azizi, Z., Rezaeimanesh, M., Tohidian, T., & Rahimpour, M. R. (2019). Dimethyl ether: A review of technologies and production challenges. Chemical Engineering & Processing: Process Intensification, 136, 11-33. https://doi.org/10.1016/j.cep.2018.12.007
Baliban, R. C., Elia, J. A., Weekman, V., & Floudas, C. A. (2013). Process synthesis of dimethyl ether via methanol dehydration: Single-step vs. two-step processes. AIChE Journal, 59(9), 3552-3567. https://doi.org/10.1002/aic.14135
Basu, P. (2018). Biomass gasification, pyrolysis, and torrefaction: Practical design and theory. Academic Press. https://doi.org/10.1016/C2016-0-04641-4
Biedermann, F., Behrendt, F., & Fendt, S. (2015). Economic and ecological assessment of DME synthesis and application pathways in comparison with fossil fuels in Germany. Energy Procedia, 75, 39-44. https://doi.org/10.1016/j.egypro.2015.07.272
Ciferno, J. P., & Marano, J. J. (2002). Benchmarking biomass gasification technologies for fuels, chemicals, and hydrogen production. National Energy Technology Laboratory (NETL). https://doi.org/10.2172/946079
Dufour, A., Girods, P., Masson, E., & Rogaume, Y. (2011). Syngas production from biomass using pressurized entrained flow gasification: Technological challenges and economic prospects. Renewable Energy, 36(9), 2336-2343. https://doi.org/10.1016/j.renene.2011.01.026
Fennell, P. S., & Anthony, E. J. (2015). Calcium and chemical looping technology for power generation and carbon dioxide (CO?) capture. Woodhead Publishing. https://doi.org/10.1016/C2014-0-01884-5
Gan, Y., Pan, C., Huang, H., & Lin, Y. (2019). Techno-economic analysis of a low CO? emission dimethyl ether (DME) plant based on gasification of torrefied biomass. Energy, 186, 115887. https://doi.org/10.1016/j.energy.2019.07.102
Gao, L., Zhu, W., & Li, C. (2020). Sustainable energy security in Indonesia: A feasibility study of DME substitution for LPG. International Journal of Energy Research, 44(7), 5556-5569. https://doi.org/10.1002/er.5149
Hofbauer, H., Materazzi, M., & Wlodarczyk, R. (2018). Advances in gasification for bioenergy, syngas, and biochar production. Elsevier. https://doi.org/10.1016/C2016-0-03962-8
Hu, X., Wang, Z., & Xu, W. (2021). Economic feasibility of coal gasification for dimethyl ether production in developing countries. Energy Economics, 95, 105010. https://doi.org/10.1016/j.eneco.2021.105010
IEA (International Energy Agency). (2022). The role of coal in a sustainable energy transition: Challenges and opportunities. IEA Report. https://doi.org/10.1787/9789264304394-en
Iijima, T., Miyamoto, S., & Takeda, K. (2019). Life cycle assessment of coal-to-DME production in comparison with conventional energy sources. Journal of Cleaner Production, 241, 118264. https://doi.org/10.1016/j.jclepro.2019.118264
Liu, Y., Jin, Y., & Wang, J. (2020). Process optimization and economic evaluation of a coal-to-DME plant integrated with carbon capture and storage. Energy Conversion and Management, 220, 113069. https://doi.org/10.1016/j.enconman.2020.113069
Nemanova, V., Zhang, W., & Yang, Z. (2018). Techno-economic evaluation of a coal gasification-based dimethyl ether (DME) production process in China. Fuel, 221, 463-472. https://doi.org/10.1016/j.fuel.2018.02.038
Park, J. H., & Kim, S. (2017). Economic assessment of DME production from coal gasification with CO? capture and utilization. Applied Energy, 207, 385-396. https://doi.org/10.1016/j.apenergy.2017.06.099
Quddus, A., Raza, M., & Gulzar, M. (2021). Potential of DME as an alternative fuel: Production technologies, performance evaluation, and environmental impact. Renewable and Sustainable Energy Reviews, 141, 110764. https://doi.org/10.1016/j.rser.2021.110764
Sharma, P., & Agrawal, S. (2018). Sustainable energy solutions for developing economies: A case study of coal gasification for DME production. Journal of Environmental Management, 216, 269-278. https://doi.org/10.1016/j.jenvman.2018.03.070
Tian, H., Wang, H., & Liu, C. (2020). Cost-benefit analysis of dimethyl ether production via coal gasification: A case study from Southeast Asia. Energy Policy, 140, 111409. https://doi.org/10.1016/j.enpol.2020.111409
Zhang, Y., Guo, Q., & Zhao, X. (2019). Comparative analysis of coal-to-DME and coal-to-methanol pathways: Economic and environmental perspectives. Chemical Engineering Journal, 374, 392-402. https://doi.org/10.1016/j.cej.2019.06.074
