China National Chemical Engineering Corporation signs Indonesia's first green methanol and dimethyl ether project

Recently, China National Chemical Engineering Corporation (CNCEC) and Indonesia's PT. INDOENERGI BARU UTAMA formally signed the EPC contract for the 200,000 tonnes per annum green methanol and 140,000 tonnes per annum DME project in Indonesia. This marks the entry of bilateral cooperation into a substantive phase and represents a significant achievement in deepening collaboration between China and Indonesia within the field of producing green, clean energy from biomass feedstocks.

The project, located in Timika Regency, Papua Province, capitalizes on Indonesia’s tropical rainforest climate-characterized by year-round temperatures of 25-27°C and humidity levels of 70–90%-which supports abundant biomass growth, providing a strong foundation for green energy production.

In an innovative approach, the project will cultivate giant reed on land within tailings pond areas to produce green methanol and DME. This model not Promotes ecological restoration and rational land use in mining-influenced zones but also addresses Indonesia's domestic shortage of green methanol and DME. It will further stimulate the production of sustainable clean energy, create local jobs, and support exports to neighboring markets, thereby boosting synergistic development across industrial chains and supporting Indonesia’s industrial modernization.

As the first biomass-based green methanol and DME project in Indonesia, the initiative also marks a significant achievement for CNCEC in the country’s clean energy sector and strengthens the company’s strategic presence in the region. The project will fully adopt Chinese technology, standards, and equipment, underscoring CNCEC’s commitment to the 'T+EPC' model—where technology leads engineering procurement and construction.

Going forward, CNCEC will leverage the technical advantages of the 'T+EPC' framework, actively integrate resources from all stakeholders, and dedicate efforts to advancing high-standard project construction. The company aims to establish a benchmark for high-quality clean energy projects and contribute CNCEC’s expertise in technology and equipment to the Belt and Road Initiative.