Dec 2020

UCG for energy resilience and

transition to clean energy

FH Kristiono

PT Medco Energi Mining Internasional

MedcoMining
Medco Energi Mining Internasional
PT. Medco Energi Mining Internasional
MedcoMining
www.medcoenergi.com

The Mining Company of Choice

 FH Kristiono
Chief Operating Officer of PT Medco Energi Mining Internasional

Mr. Kris holds a vivid 27 years of experience in Indonesia’s coal and overseas
assignments. Started in 2005 with PT. Medco Energi Mining Internasional (Medco
Mining), a group of Local Giant Energy Company – Medco Group, where he is appointed
him as COO.

His 15 years of experience with Medco Mining in developing challenging coal mine site
with the highest sulphur contain in the world, has made him a real champion in fully
developing mine site from the scratch.

In the earlier years, he worked as Wash Plant Metallurgist at Senakin Mine in PT.
Arutmin Indonesia for 5 years.

Another 7 years later of holding the role of Marketing and Logistic Transport Manager
in BHP Billiton has completed his expertise with a solid network to penetrate niche
market.

He graduated from Mining Engineering of ITB, with Major in Coal Processing and MBA
of ITB, with concentration in Energy Management.

He become vice chairman of Indonesia Coal Mining Association start in 2017 - recent

Mr. Kris lives in Jakarta, Indonesia with a beautiful wife and two lovely daughters.

“Miner by Education, fhkristiono

Marketer by Passion, & @FH_Kristiono
Storyteller at Heart” F Hary Kristiono
FH Kristiono
Blog as Coal and Mineral Institute
12/6/2020
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 Outline
UCG Development

No. Agenda
I Overview Medco Mining
II UCG overview
III UCG Resources and potential market
IV MEMI Desk study results of UCG prospect
V The way forward: Brief Description of Kepmen ESDM 2370 tahun 2017

VI Concluding remarks

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 I. MedcoMining Overview
PT Medco Energi Mining Internasional : Our History

1980 : Established as Meta Epsi Pribumi Drilling Company

1994 : Initial Public Offering in Indonesia
1995 : Acquired 100% shares of Stanvac Indonesia from Exxon
1996 : Discovered largest onshore oil reserve (Kaji-Semoga)
2005 : Awarded EPSA IV PSC Contract for Area 47 Libya
2006 : Oman Service Contract awarded from PDO
2007 : Discovered oil in Area 47 Libya
2009 : LNG Sales Agreement signed with Japan from Senoro
2010 : Obtained 20-year extension for PSC contract Indonesia
2011 : Acquired 25% in Block 9 Malik Yemen
2012 : First Coal Shipment from Nunukan to China
2013 : UCG Initiative with Cougar Energy
2017 : Newmont Batu Hijau NTB Acquisition
2017 : MedcoMining Assignment for UCG Acceleration
2018 : BEH – Samarinda Coal Mining Acquisition
2019 : NBSS – Nunukan Coal Mining Acquisition

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 I. MedcoMining Overview
Clustering Operation : Share Infrastructure & Facility

RESOURCE RESERVE
NO Prospect AREA (Ha)
(MMT) (MMT)
1 DTR 1700 3.3 1.4
2 DTSA 2676 3.9 1.7
3 NBSS 1100 4.2 2.1
Total 5476 11.4 5.2

Note:
1. DTR and DTSA Asset own 100 % by MEMI;
2. NBSS own 70 % by MEMI;
3. DTR (CV 6,500 GAR – TS 3.5%) start production/
first shipment on November 2012;
4. NBSS (CV 6,500 GAR – TS 2%) and DTSA CV
6,500 GAR – TS 2.5%) will start shipment on July
2020, after granting a forestry permit (IPPKH).
RESOURCE RESERVE
NO Prospect AREA (Ha)
(MMT) (MMT)
1 BEH 1002 3.2 1
Total 1002 3.2 1

Note:
1. BEH 73% own by MEMI, in construction stages;
2. Wil start production/shipment on January
2020;
3. Having 2 brand of coal such as CV 6,500 GAR-
TS 1.5% and CV 6,000 GAR-TS 2.5%.

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 Underground Coal Gasification/UCG
What & How to Figure on UCG Prospect
UCG offers :
• Low cost of syngas
• Low CO2 emission
• Low capex and opex
• High efficiency (70-80%)
• Economically viable even
at small scale

Method of Delineation UCG Prospect :

• Desk study : Data collection (geological map, seismic 2.5D, drilling, coal sampling, coal
analysis, & well logging), follow by geological (sub surface) interpretation & finally
delineation of UCG prospect
• Result : Tarakan Prospect and Senda/Rimau in South Sumatera Prospect
• Site Characterization : Base line sample, test burn, syngas outflow and controlling,
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ground water monitoring & environmental controlling
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 Open Pit Coal Mining vs UCG Operation
Not All Open Pit can be Converted to UCG

UCG site selection criteria:

• Coal seam >5 m thick
• Rank less important, as long as TM + Ash max 50%
• Lignite rank will influence to less syngas production
• Well-defined coal seam with minimal discontinuities
• Depth 150-400 m with high hydrostatic head
• Overburden with low permeability that is structurally sound
• No groundwater aquifers in vicinity
• Scale of deposit matched to economics of utilization (eg. power plant size)

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 UCG Coal Resources
The deposit in South Sumatera is potential to supply SSWJ

• The amount of deep seated coal resources in Indonesia is about 43 billion ton that
distributed in Sumatera 22.17 Billion ton and Kalimantan 20.91 Billion ton (BT). The
resource will increase significantly if the exploration will be intensified
• The resource in Sigoyang benuang area are 2.6 billion ton, Sungai pinang 2 billion
ton and babat 2,4 billion ton.
• This coal deposit in south sumatera is close to South Sumatera West Java Natural
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(SSWJ) gas pipe line.
 UCG Potential Market
Various product could be synthesized through syngas

Steam

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 UCG Potential Market
Natural Gas deficit in South Sumatera –Java Region

• NatGas Shortage central and south Sumatera, Kepri & west java is about 1000 MMSCFD in
2024 and if project supply also be considered the shortage is about 1100 MMSCFD in
2030. Project supply is an estimate of the volume of natural gas that can be supplied from
gas field that its development plans have been approved or are in the process of approval.

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 UCG Potential Market
Natural Gas deficit in South Sumatera –Java Region

• The shortage of gas supply in the South Sumatra West Java (SSWJ) pipeline in the next
few years could be filled by Synthetic Natural Gas (SNG) from UCG. This scenario is
potentially more attractive than the LNG import scenario. However economic studies
including cost benefit analyzes are necessary to determine the best options

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 UCG Potential Market
Small scale High Efficiency Low Emission (HELE) power plant
Super critical &Ultra supercritical
Power plant capacity
1. HELE power plant economically No CFPP Name Capacity
viable on very high capacity (MW)
(>600MW) 1 Cirebon 660
2. There is demand of small scale 2 Paiton 3 815
distributed power plant outside 3 Cilacap 3 660
java island
4 Adipala 660
3. Integration of Underground coal
5 Banten/LBE 1 660
gasification and solid oxide fuel cell
6 Jawa 7 Unit 1 1000
may become viable option of small
scale HELE Power Plant 7 Jawa 8 1000

syngas Electricity
Oxygen UCG SOFC

12
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 Fuel Cell
What is Fuel Cell

 Fuel cell is a device that generates electricity by a chemical reaction

 A Fuel cell consists of anode, cathode, catalyst and electrolyte
 Electrolyte role is to filter ion, only appropriate ions to pass between anode & cathode
 Catalyst speeds the reactions at the electrodes

Source : https://americanhistory.si.edu/fuelcells/basics.htm

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 UCG Potential Market
Integration of UCG & Solid Oxide Fuel Cell

Syngas requirements:
• Syngas should free from tar
and solid particles;
• H2S max 1ppm;
• Halides max 1 ppm;
• Ammonia max 0.5 vol%.

Conceptual Process Flow Diagram

UCG Geo-Reactor

Note: The technology for cleaning syngas is already proven technology

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 MEMI Desk Study Results
Tarakan Island Prospect : Substitute Existing Diesel Power Plant

12/6/2020 Source: MedcoMining & Medco Energi

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 MEMI Desk Study Results
Senda/Rimau/South Sumatera : Could Replace Scarcity of Gas at SSWJ

Block 3

PSC RIMAU
Kaji
Block 1
Semoga

Block 2

Coal
Block Area (Ha) Resources Tcf MW
(mio mt)
1 7,236 564.5 2.14 821
2 9,458 3,631 13.8 5,279
3 29,300 1,014 3.84 1,474
Total 45,994 5,209 19.74 7,574

Notes: 25 Years Project

Source: MedcoMining & Medco Energi

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 MEMI Desk Study Results
Target Selection : Utilize Oil & Gas Data in Jambi

Area Yang dihitung

Resources : Coal Quality :

TM : 38 – 40 %
` Seam Longstrike (m) Down Dip (m) Thick (m) SG Sumberdaya (mt) SR Ash: 4 %
UCG (150 - 500 m) 99B 5000 4000 10 1.3 260,000,000 - TS : 0.4 %
CV : 5100 GAD
Total Sumberdaya 260,000,000 CV : 3800 GAR
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 Underground Coal Gasification/UCG
The road map of new energy alternative and the proof ground based

YEAR 2018 - 2023 (5 YEARS PILOT PROJECT) 2024 - 2043 (20 YEARS COMMERCIAL)
Kepmen ESDM 2370 Percepatan UCG for Pokja Team
Kepmen UCG Commercial 30MW for Tarakan &
Regulation
Kepmen Pilot Project UCG 5 MW for Tarakan & Senda/South Sumatera Gas to Chemical for Senda/South Sumatera

Activity Stage 1 : Proposal PreFS Stage 2 : Site Char, Flare & 1MW Stage 3 : 5MW Pilot Project Stage 4 : Commercial 30MW & Gas to Chemical
- MedcoPhoenix submit proposal - Mapping location details - Additional site preparation - Expansion to 30 MW for Tarakan
- Pokja 1 review proposal - Drilling & Hydrogeology - Initial power generation 5MW - Expansion Gas to Chemical Plant for Senda
- Pokja 1 setup criteria - Site preparation - Maint & enviromental test - Additional capital items
Scope of Work - Pokja 1 approve proposal - FS and EIA - Monitoring of UCG process
- ESDM prepare Kepmen Pilot - Ignition, flaring & monitoring
- Gas engines trial 1 MW
- Principle licence obtained
- Capex $100k for Data Collection - Capex $500k for Site Charact - Capex USD 7.6 mio for 5MW - Capex USD 38.9 mio for 30Mio
Investment
& Site Visit - Capex $2.5mio for 1 MW
Commitment - Financial Capability Statement - PPA base Permen ESDM 38/2016

Final Result - Pre FS Economic of UCG - UCG Resources & Res Statement - Suitability of UCG Tech - Syngas
- Criteria Enviro, Safety, Financing - Approve FS & EIA - Regulation UCG Indonesia - Electricity
- Kepmen Pilot UCG for BU - PPA 5 MW obtained
Supervisory Sekjen ESDM, Dirjen Minerba, Dirjen Electricity, SKK Migas, Dirjen Migas, Dirjen EBTKE, Dirjen KLHK, Geology Agency, Lemigas,Tekmira, ITB, & LIPI
Permit Stage Right to Match / Tender IUP UCG Exploration Tarakan & South Sumatera IUP UCG Production Tarakan & South Sumatera
To proof environmental and technical viability of UCG with supervision from Mining Dept, Environment Dept,
Oil & Gas Dept, Electricity Dept , and EBTKE Dept is on the agreed baseline otherwise
rejected as Indonesia Energy Mix Alternative Option

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 Concluding Remarks
From Conventional Coal Mining to Clean Energy

1. UCG development fact finding is beyond conventional coal mining

indicate that UCG very interesting to be developed in Indonesia, which offer
many advantages but have to be managed the challenges, respectively

2. UCG is a part of clean energy, which is combining syngas produced

with SOFC (IGFC) shifting to clean energy in energy transition era
(small & distributed power plant)

3. UCG in South Sumatera to produce synthetic natural gas (SNG) may

become viable solution for the shortage of natural gas in south
sumatera-west java region

4. Indonesia has huge potential of deep seated coal that should be utilized
to increase domestic energy resource availability in the near future (Energy
Security).

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 End of Presentation
Many Thanks for Your Attention
For further inquiry please contact :

FH. Kristiono
Chief Operating Officer

[email protected]
Mobile +62 812 821 9517
PT Medco Energi Mining Internasional
Tel +62-21 2995 3279
Fax +62-21 821 1381
The Energy Building 25st floor SCBD Lot 11A
Jl. Jend Sudirman Kav. 52-53
Jakarta 12190, Indonesia

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