Seeking Equity Investor / JV for Coal to Liquid Project in Indonesia
by Ahmad Fakar
We are PT. Nurin Inti Global a new natural energy resources company registered in Indonesia has coal concession with deposit of about 50 million tonnes lignite coal in Kalimantan Indonesia. We have a plan to build Coal to Liquid Fuel with capacity of 5,000 BPD.
We have done pre assesment and develop a business plan for this project. Based on our projection the project will required financing of about USD 740 Million and will generate revenue of about USD 260 Million per year with profit USD 178 Million per year and IRR 20.60% (for 20 years) (EBITDA).
Presently we seek USD 25 Million capital from equity investor to join with us and we offer to investor 20% equity / profit share for 10 years (total ROI = 400%).
The fund we will be used to develop of full detail feasibility study (bankable), basic engineering &procurement, FEED, CED & DED, EPC selection for project ready for construction and bank loan. This development phase will take for about 10 to 12 Months.
Indonesia Coal to Liquid (CTL) Project Overview.
Indonesia, which has requirement of energy and fuel has experience of shortage of supply for energy and fuel at this point where the government of Indonesia has to import fuel from petroleum to address the needs of its energy and fuel. With the potential the availabilities of low grade coal resources in Indonesia, option to overcome the shortage of supply and dependence on imported petroleum fuels can be minimized and this is an opportunity for Indonesia to make coal as a liquid fuel as alternative for the transition of fuel conversion to other resources in the 25 till 30 years accordance with the availabilities of coal resources from the use of petroleum fuels towards other fuels that will be developed.
Responding to the challenges, opportunities and to participate in addressing the needs of the fuel in Indonesia as above, our company that cooperate with CTL technology companies and experience in developing CTL plant has initiative to build a CTL plant in Indonesia.
Company plans to develop CTL facilities with capacity 5,000 bpd (Phase 1), which the construction will take for about 3 years and will continue to develop with capacity of 20,000 bpd in Phase 2. The development of phase 2 will be implemented after the first plant of Phase 1 is completed and success in operation and production at year to 5 or 6.
Currently company has coal mine concession with coal deposit of about 50 Million tons for the feed stock of CTL Plant with capacity 5,000 bpd in Phase 1 project. For developing the Phase 2 CTL project, company has been doing preliminary assessment to the coal mines concession that available around and closed to the company own concession and belong to other coal mines companies with total deposit of 225 million toness. The coal feed stock supply will be implemented with long terms off take agreement to the coal mine companies. With this availability of these resources of feedstock, the facilities can be operated in 50 to 60 years. The development of Phase 2 CTL Plant project, will obtain estimate revenue approximately USD 600 - 750 million per year if calculated based on the current market price.
In order this project can be accomplish as a plan and produce maximum benefits for the company and all parties, the company also has been in contact and will enter into agreements with manufacturers and technology providers who are experienced and applied their technology in several countries in North America, Europe and South Africa.
• Attractive; Investment opportunity;
Company has coal mining concession with minimum of 50 Million to Million tones of low grade coal for supplying CTL feed stock of Phase 1 project and has been identified the potential of low grade coal at other several locations of coal mines in East & North Kalimantan – Indonesia that close with company own coal concession, which has coal reserves of about 225 million tons (sub-bituminous and Lignite). Company currently has been conducting an assessment for long-term coal supply cooperation with several mining companies for supplying CTL feed stock of Phase 2 project.
• Minimal technology risk;
Coal to Liquid technology has a proven with wide-scale adoption, currently implemented in over 300 commercial scale project worldwide.
• Clean, synthetic liquid fuel;
Company will produce synthetic diesel fuel exhibits better performance than conventional diesel fuel, is readily marketable using existing infrastructure (petrol stations), can be used in traditional diesel engines with is particulate/sulfur free.
• Market opportunity;
Currently Indonesia government is still importing diesel fuel from outside the country for about 50,000 bpd of diesel fuel. With a production plant phase I and phase II, can contribute 15,000 to 25,000 bpd to the government, reduce dependence on imports and save foreign exchange. CTL Plant also produce of about 235 MW of electricity, beside uses for auxiliary plants and internal facilities, about 65% (142 MW) of electricity will be sell out side to the other Industries or to Indonesia Government thru its authorities (PT. PLN, the state owned company for electricity) and connecting to the electricity grid for distribution to people's homes or industries around the location of the plant.
For more detail please contact us through the 'Contact Us' page of this website.