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Kobe Steel to Start Indonesian Trial Project to Upgrade Brown Coal into High-rank Coal; Project to be Carried Out Under the Japan Coal Energy Center.


Tokyo, Japan, July 5, 2006 - (JCN JCN Japan Corporate News
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 Newswire) - Kobe Steel Kobe Steel, Ltd. (株式会社神戸製鋼所  , Ltd. announces that it will start a large-scale demonstration project in Indonesia to upgrade brown coal into high-rank coal, which can be used for power generation. Although Indonesia has an abundance of brown coal, the high moisture content makes utilization of this natural resource difficult.

In starting the project, Kobe Steel signed cooperation agreements with natural resources investment company PT. Bumi Resources Tbk and its subsidiary, PT. Arutmin Indonesia, to construct and operate a demonstration plant at Arutmin's Satui mine in southern Kalimantan, Indonesia. Total investments in the demonstration project are forecast to reach about 8 billion yen (approximately US$70 million).

Plans call for the construction of the 600-ton-per-day demonstration plant to start in late 2006. From second-quarter 2008, trial production of Upgraded Brown Coal (or UBC UBC Uniform Building Code
UBC University of British Columbia
UBC Union of the Baltic Cities
UBC United Brotherhood of Carpenters
UBC Universal Battery Charger
UBC Union of Baltic Cities
UBC Universal Bibliographic Control
UBC Used Beverage Cans
) will begin. Bulk samples of UBC will be supplied for trial use to a number of power companies, including Japanese power companies. The trial operation is to continue for two years, to first-quarter 2010. Following the demonstration phase, a commercial plant is anticipated to be built in 2010.

The UBC demonstration plant project has the support of Japan's Ministry of Economy Trade and Industry through the Japan Coal Energy Center, in which Kobe Steel is a member. With its long experience in the steel industry and know-how in the power generation business, Kobe Steel will contribute its technological expertise in energy utilization and environmental technologies to the UBC demonstration project.

Coal meets one-fourth of the world's energy demand. It is the second-most important resource after oil. Over 20% of the electricity for everyday use in Japan is made by coal-fired power generation. Japan is dependent on overseas energy supplies. Coal is more abundant than oil and gas in terms of volume, and reserves are spread throughout the world. A stable source of energy, coal is expected to play an important role in the future.

The variety of coal used by many countries, including Japan, is high-rank bituminous coal bituminous coal: see coal.
bituminous coal
 or soft coal

Most abundant form of coal. It is dark brown to black and has a relatively high heat value.
. Conversely con·verse 1  
intr.v. con·versed, con·vers·ing, con·vers·es
1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak.

2.
, a representative low-rank coal is brown coal. Low-rank coal, comprising about half of the world's coal reserves, has a high moisture content and low heat value. It is also prone to spontaneous combustion spontaneous combustion, phenomenon in which a substance unexpectedly bursts into flame without apparent cause. In ordinary combustion, a substance is deliberately heated to its ignition point to make it burn. . These factors make it difficult to utilize. On the other hand, Indonesian brown coal is noted for its low sulfur and ash content, as well as for its large reserves. Roughly 85% of the coal reserves in Indonesia consist of low-rank coal.

Kobe Steel has been involved in coal utilization research for many years. Starting in 1980, Kobe Steel participated in a national project to develop brown coal liquefaction Coal liquefaction

The conversion of most types of coal (with the exception of anthracite) primarily to petroleumlike hydrocarbon liquids which can be substituted for the standard liquid or solid fuels used to meet transportation, residential, commercial, and
, a coal-to-oil technology. The UBC Process currently under development uses dewatering Dewatering (dē′wöd·ər·iŋ) is the removal of water from solid material or soil by wet classification, centrifugation, filtration, or similar solid-liquid separation processes.  technology to reduce the moisture in the brown coal. This innovative five-step process uses light oil to efficiently remove the water in the brown coal.

Upgraded Brown Coal Process

1. Low-rank coal is pulverized pul·ver·ize  
v. pul·ver·ized, pul·ver·iz·ing, pul·ver·iz·es

v.tr.
1. To pound, crush, or grind to a powder or dust.

2. To demolish.

v.intr.
.

2. The pulverized coal is mixed with recycled oil (normally petroleum light oil) and heavy oil to make slurry slurry,
n a thin mixture of insoluble material floating in liquid.


slurry

solids in suspension. Used as a method of feeding pigs—slurry is pumped through fixed lines and delivered to troughs by hoses equipped with gasoline pump fittings.
.

3. The slurry is then heated in an evaporator evaporator

Industrial apparatus for converting liquid into gas or vapour. The single-effect evaporator consists of a container or surface and a heating unit; the multiple-effect evaporator uses the vapour produced in one unit to heat a succeeding unit.
 and the moisture is evaporated evaporated

reduced in volume by evaporation; concentrated to a denser form.
.

4. The oil is recovered from the dewatered slurry using a decanter. At this stage, the upgraded coal is still in a powdery pow·der·y  
adj.
1. Composed of or similar to powder.

2. Dusted or covered with or as if with powder.

3. Easily made into powder; friable.

Adj. 1.
 state.

5. The upgraded coal is briquetted for easy transportation.

Kobe Steel began development of the UBC Process in 1993, applying slurry dewatering technology used in coal liquefaction to upgrade low-rank coal. Using a 100-kg-per-day bench-scale unit built at Kakogawa Works, Kobe Steel began working on the practical application of the process in the mid-1990s. In 2001, Japan and Indonesia adopted the UBC Process as a national project. In the years to 2004, a 3-ton-per-day pilot plant was constructed and operated in Indonesia.

The new, scaled-up demonstration plant provides the next major step to realizing a commercial UBC plant. The UBC Process raises the heat value of brown coal 1.5 times, to the same level as high-rank bituminous coal and has only one-third the ash. At the same time, it solves the problem of shipping and storage limitations, making possible the utilization of upgraded coal as a substitute for high-rank coal. UBC has the potential of becoming a clean, outstanding source of energy. Both Indonesia and Japan have high expectations for the early commercialization of the UBC Process.

AboutJapan Coal Energy Center (JCOAL)

The Japan Coal Energy Center is a non-profit organization A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes.  under Japan's Ministry of Ministry of Economy Trade and Industry. Its activities cover all aspects of coal, from coal mining to coal utilization. JCOAL promotes increasing the world coal supply and environment friendly coal utilization to reduce the global environment burden. To contribute to the stable supply of energy and sound growth of the industrial economy, JCOAL undertakes coal research, business support, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees.  development, coal surveys and coal research. More information is available at www.jcoal.or.jp/index-en.html

About PT. Bumi Resources Tbk

PT Bumi Resources Tbk is involved in coal mining and oil exploration. Based in Jakarta, Indonesia, Bumi was established in 1973. In 2005, the company produced a total of 36 million metric tons of coal. More information is available at www.bumiresources.com

Besides Arutmin Indonesia, Bumi Resources conducts coal-mining operations through PT. Kaltim Prima Coal. In 2005, Kaltim Prima Coal produced 21.4 million metric tons of coal.

About PT. Arutmin Indonesia

PT. Arutmin Indonesia is Indonesia's fourth largest coal company, producing 14.6 million metric tons in 2005. Arutmin Indonesia is based in Kalimantan, Indonesia. More information is available at: More information is available at www.arutmin.com

About Kobe Steel, Ltd.

Kobe Steel is one of Japan's top manufacturers of aluminum and copper products. It is also a leading steelmaker in Japan. Other businesses include welding welding, process for joining separate pieces of metal in a continuous metallic bond. Cold-pressure welding is accomplished by the application of high pressure at room temperature; forge welding (forging) is done by means of hammering, with the addition of heat.  consumables, industrial machinery, engineering, construction equipment, and electronic materials. More information is available at: www.kobelco.co.jp

Source: Kobe Steel, Ltd.

Contact:
Gary Tsuchida
Publicity Group
Kobe Steel, Ltd.
9-12 Kita-Shinagawa 5-chome
Shinagawa-ku, Tokyo 141-8688
JAPAN
Tel: +81 (0)3 5739-6010
Fax: +81 (0)3 5739-5971
E-mail: www-admin@kobelco.co.jp
URL: www.kobelco.co.jp


Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K.
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No portion of this article can be reproduced without the express written permission from the copyright holder.
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Publication:JCN Newswires
Geographic Code:9JAPA
Date:Jul 5, 2006
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