PENConsulting Promotes Coal Water Slurry Application to Fuel Power Generation

Jakarta -- June 2010.

PENConsulting has engaged in studies for the commercial application of coal water slurry (CWS) to provide clean coal based fuel for industrial boilers and steam turbine power plants in Indonesia, utilizing Indonesia produced coal. In July 2008, PENConsulting established an energy business affiliate, PT Pramartha Energi Nusantara (PENAlliance – “PEN_A”), which in turn took participating interest in CHIPS Energy Company Ltd (“CHIPS Energy”), a corporation for advanced clean coal and green energy application, based in Hongkong, China. CHIPS Energy holds the license of the CWS technology developed by the Institute of Thermal Power Engineering of the Zhejiang University in China for the CWS fuel additives and combustion system design.

Results of the studies indicate that CWS has potential application to substitute Marine Fuel Oil / Heavy Fuel Oil (MFO/HFO) used in industrial and steam power plant boilers with significant cost savings and ease of handling. The studies also indicate that CWS can be used as an alternative low rank coal-based, clean fuel in new industrial and power plant boilers at competitive steam / electricity generated prices.

The application of CWS technology developed by Zhejiang University has been proven in more than 90 steam and power generating plants utilizing CWS in China, with capacity ranging from 1.5 MW to 200 MW. It’s also been applied in Japan, Italy and Russia.

PENConsulting and its associates conducted a pre- feasibility study to convert MFO/HFO into CWS at a 2x50 MW steam power plant in Central Java, Indonesia. By replacing the boiler unit, fuel combustion system and minor upgrade on the fuel piping system, using coal of 5,600 – 5,800 kcal/kg heat value, the fuel conversion could save approximately USD 41 million annually to generate the same capacity of electricity by spending approximately USD 62 million for the fuel conversion. This fuel conversion project assumes the CWS is produced at the coal mine-mouth and delivered CIF (cost, insurance, and freight) to the power plant site.

Attached below is a copy of an article on "Application Of Coal Water Slurry In Power Generation", by Pontjo H. Soedjanto, CEO - CHIPS Energy Co., Ltd.; and Prof. Zhijun Zhou, Ph.D , Associate Professor, Institute for Thermal Power Engineering, Zhejiang University, Hangzhou, China.

For more information and inquiries, contact:

PT Pranata Energi Nusantara (PENConsulting)
Graha Niaga, 17th Floor
Jl. Jendral Sudirman Kav. 58
Jakarta 12190, Indonesia
Tel. +62 21 2505858 / Fax. +62 21 2505959
Attn. Mr. Anton Wahjosoedibjo

CHIPS Energy Company Ltd., A Corporation for Clean Coal and Green Energy Application
Indonesia Office:
Graha Niaga, 17th Floor
Jl. Jendral Sudirman Kav. 58
Jakarta 12190, Indonesia
Tel. +62 21 2505858 / Fax. +62 21 2505959
Attn. Mr. P. H. Soedjanto, CEO
Hongkong Ofice:
Unit A, 24th Floor
Seabright Plaza 9-23
Shell Street, North Point, HongkongTel.
+852 25787878 / Fax. +852 785097