Is Asia Following the West Down the Wrong Energy Path?

Part of the problem is that Asian countries, and developing nations on other continents, still appear to want to emulate the West, rather than surpass it. -- Excerpt from The Jakarta Globe
Clean energy is certainly a challenge to every nation in the world, especially Asia. Providing energy to fuel the development while reducing the effect of the development itself. 
The latest statement is worth to fight for: "maybe it's time for Asia to lead rather than follow"

Chinese firm to build coal-fired power plant in West Kalimantan

PT Praba Indopersada, a subsidiary of general contractor firm Praba Group of Indonesia and Chinese firm Gezhouba Group, won a bid to build state-owned electricity company PLN’s coal-fired power plant in Bengkayang, West Kalimantan. -- Excerpt from The Jakarta Post

Total investment of the above 2 x 50 MW power plants would be $172 million and shall be part of second 10,000 MW scheme of power generation crash program. Power plant investment would certainly boost coal production from coal mining company, particularly in West Kalimantan area. From what I've learned, there are huge coal resources (and certainly reseves) in this area, ranging from low calorie (below 4,500 GAR) to high calorie (above 6,200 GAR), which are not yet being developed.

Bukit Asam to build two coal gasification plants

In a bid to help meet growing demand for gas in the country, state coal miner Bukit Asam (PTBA) plans to build two coal gasification plants and explore coalbeds for methane, a top company executive said. -- Excerpt from The Jakarta Globe.

Coal bed methane and gas are two "commodities" which are likely to be a hit in a future to replace crude oil and coal due to massive production and reserves depletion. I think Bukit Asam is on the right track to diversify its business, but the big question would be if it's the right time. We'll see.

In Mongolia, you're not just developing your company to survive but developing the country as well

Investors keen to reap the benefits of Mongolia’s untapped mineral riches have shifted their focus from copper and gold to coal, with energy-hungry neighbor China as a key customer. -- Excerpt from The Jakarta Globe.

I have friends (let me call them friend) out there in northern part of Mongolia, starting up coal mining operation in an extreme weather condition, which is called MoEnCo. They told me that they have to build around 1,000 km road to mobilize their equipments. That's major infrastructure development, I must say. I told them that they're not just starting up a company but developing their country. And, they didn't even know what corporate social responsibility is.

India’s Essar Group buys Aries Mines in Indonesia

The mines, which hold as much as 100 million metric tons of power-station coal, are in the Kutai region of East Kalimantan. The transaction is expected to be finalised in April and production could start within a year.
Excerpt from The Jakarta Globe.

Other than China, India is screaming loudly for more coal for its power plants. Essar is building six power projects in India and will increase generation capacity to 6,100 megawatts from 1,220 megawatts by 2012.

India’s National Aluminium to start building $4b coal fired power plant in East Kalimantan

National Aluminium, India’s second-biggest producer of the metal, will start construction of its $4 billion joint-venture smelter and coal-fired power plant in Indonesia by June, to extend its reach into Southeast Asia.
Excerpt from The Jakarta Globe.

What do you know? I really think It's a very good strategy for both Indonesia and India. We need long term energy security as India need our coal for their energy security.

China's appetite for overseas coal is roaring

Entering the Year of Tiger, enterprises in the world's largest coal producer,Shanxi's Coal Barons being "Reorganized" Out of the Industry Shanxi's Nationalizing of Coal Mines Riles Zhejiang Investors, Government China, are more and more seeking overseas coal. The unexpectedly massive onslaught of snow and ice in the country's northern reaches has caused coal shortages in the southeast and is strengthening the determination of Chinese firms to go after overseas resources.

Excerpt from chinastakes.com

As I can recall, Indonesia is the largest coal exporter in the world and considering Indonesia's advantages, in term of transport distance, in the eye of China, China's industry will definitely eyeing Indonesia as its primary coal sources. Somehow this will lead to another push to increase the production and meet the demand.

PLN to increase cheaper coal and natural gas usage on its power plant, reducing total cost

This year, PLN estimates that 19 percent of its electricity will be generated from oil, 6 percent less than last year. About 44 percent will be from coal, up 5 percent, and 26 percent from gas, up 1 percent. Seven percent will be from hydropower, 2 percent from geothermal and 1 percent from biofuels. In 2011, PLN expects coal to generate 54 percent of its power, gas 25 percent and oil 12 percent.
Excerpt from The Jakarta Globe.

Government plan on energy mix seems out of the cloud. At this point, coal and natural gas would give more advantages in term of cost. Yet, strict environment control shall become challenges especially on coal usage.

Domestic market obligation on coal: volume and price determination

their concern is not so much about the requirement to allocate a portion of their output to domestic users, but the lack of clarity regarding how the volume of domestic needs for each mineral is set, how the obligation will be distributed among the producers and how the prices will be determined.
Excerpt from The Jakarta Post.

Another point of view, which I was highlighted several days ago. Volume (in this case quota) determination and distribution to each coal producers and price determination by government.

Domestic market obligation for coal producers: non-compliance leads to sanction

The government may force coal miners to cut production if they fail to supply the domestic market under a regulation that took effect Jan. 1. The government will decide by June the amount companies must aside for the domestic market next year, according to the regulation.
Excerpt from The Jakarta Globe.

Govt applies DMO regulation(?) To both coal producers and consumers. This has got me wondering. If producers produce relatively low spec quality, in term of high sulfur, and/or high ash, and/or high sodium, and/or low AFT, and/or low CV, will DMO still in effect? If so, then huge re-engineering application on old boilers are required. Still the opportunities are significant increase on national coal reserves. The 2nd fast-track of 10,000 MW power plant development is the key to manage such low-rank coal to be able to be consumed by new design of coal power plants. I hope.