Our Cleaner Coal Products
Envirocoal: One of the World's Cleanest Coals

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The coal that Adaro Energy sells is a moderate-energy, sub-bituminous coal that is one of the cleanest fossil fuels in the world thanks to its naturally ultra-low sulphur, ash and nitrogen contents.

Our established brand, mined in South Kalimantan by our core subsidiary Adaro Indonesia, has been trademarked internationally as Envirocoal. It was joined in the market in 2014 by the similarly low-pollutant Balangan Coal, mined from a greenfield coal deposit 11km southeast of Adaro Indonesia’s concession in the Balangan district of South Kalimantan.
 

Envirocoal

Envirocoal has been widely used since 1992 across Europe, Asia, the Americas and domestically (see customer base here) in power generation, cement manufacturing and industrial applications where environmental restrictions are stringently controlled, or as a blending coal with more common high-ash, high-sulphur coals. Results have consistently shown a significant drop in environmental impact compared to standard coal when it is used.

Because of its rare qualities, Envirocoal also provides excellent economic and technical benefits through lower maintenance and operating costs and improved combustion, ash handling and ash disposal efficiencies, making it the most environmentally acceptable and cost effective solid fuel available.

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Envirocoal at Adaro Indonesia’s open-cast mine in South Kalimantan. The sub-bituminous coal has a calorific value between 4,000 and 5,000 kcal/kg.

The strong and consistently growing demand for Envirocoal — we plan to produce 52 to 54 million tonnes for domestic and export consumption in 2016 — shows that it has proven to be competitive with higher-rank coals on a per-unit-of-energy basis.

Envirocoal’s low ash content means lower maintenance costs for pulverisers, coal pipes, boiler tubes and other equipment along the coal path. Envirocoal also allows power producers to meet environmental regulations without the need for flue gas desulphurisation (FGD) units, which significantly reduces plant capital and operational costs.

Our principal subsidiary, Adaro Indonesia, has been producing Envirocoal from the three pits at our mine concession at Tabalong in South Kalimantan for 24 years. We sell different kinds of Envirocoal, named for their approximate calorific values: E5000, from the Tutupan and Paringin pits, E4900 from the Tutupan pit and E4000, from the Wara pit.
 

Our Other Coal Products

In 2013, we acquired three companies – PT Semesta Centramas (SCM), PT Laskar Semesta Alam (LSA) and PT Paramitha Cipta Sarana (PCS) — with mining licenses covering a total of 7,500 hectares strategically located 11km southeast of Adaro Indonesia’s established concession at Tabalong. The concession is part of the same geological basin, and Balangan Coal’s characteristics are similar to Adaro Indonesia’s low-ash, low-sulphur Envirocoal, but with a slightly higher calorific value than E4000 at 4,436 kcal/kg.

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Envirocoal is crushed and stockpiled at our Kelanis river terminal for transport to customers. As the coal is among the world's cleanest, it also provides excellent economic and technical benefits for power producers.

Our new Ultima coal will be produced by our subsidiary PT Mustika Indah Permai from our recently acquired mine site in South Sumatra. Its coal shares similar low-pollutant traits — relatively low sulphur and ash content — but has a slightly higher calorific value than Envirocoal E4000 at 4,281 kcal/kg on a gross as received (gar) basis.

Meanwhile, our subsidiary PT Bhakti Energi Persada (BEP) is preparing for mining at a recently acquired concession in East Kalimantan. The coal it will produce, trademarked Wahau, is low energy, with a calorific value of below 3,500Kcal/kg, but with low sulphur and ash content. BEP will be able to take advantage of Adaro’s long-established expertise in developing global markets for low-grade environmental coals.

Envirocoal’s Qualities

Ash Content
2-3% (adb)

Lowest ash content among coals produced for global export trade, giving consumers significant cost savings. Blending Envirocoal with higher-ash coal reduces the on-costs associated with ash disposal. This is significant in countries such as Japan with limited disposal areas. Low ash level also reduces deposition rates in boilers, improving thermal efficiency and reducing maintenance costs.

Nitrogen Content
0.9-1.0% (daf)
Envirocoal is among the 10 lowest coals by nitrogen content. Low nitrogen content enables consumers to reduce the costs associated with removing nitrous oxides from the flue gases. This results in more net power for sale and lower electricity production costs.

Sulphur Content
0.1-0.25% (adb)

Regulation of emissions of sulphur oxides has required some consumers to install flue gas desulphurization (FGD) equipment or to reduce the sulphur content in their blend of coals. But FGD units can cost up to 20% of the capital expenditure of a new power station, and Envirocoal’s ultra-low sulphur content helps consumers meet regulated standards and delay such capital expenditure.

Envirocoal is the best environmental solid fuel available. Gaseous emissions and particulate airborne emissions are lower than any other solid fuel. The amount of captured ash waste is very small on an absolute basis and very low compared to other coals. The chemical composition of airborne and captured ash wastes renders them benign and suitable for recycling.

Sulphur Oxides
The occurrence of sulphur in Envirocoal is lower than nearly any other coal in the world. Because of this, sulphur dioxide or SO2 emissions will be in the range of 50–100 parts per million or 0.20–0.26 lbSO2/mmBTU, lower than that produced by other coals, sometimes even from power plants equipped with flue gas desulphurisation.

Nitrogen Oxides
The use of Envirocoal in most furnaces results in lower nitrogen oxide or NOx emissions compared to other coals. In many cases, NOx emissions have been reduced by as much as 40% when Envirocoal is used as the sole feed. The exact amount of reduction will vary from unit to unit and also depends on the operating conditions.

Dust Emissions
In most dust collectors the particulate emissions of Envirocoal are approximately the same or less than other coals, however some electrostatic precipitator tests have shown a marked reduction in emissions due to a combination of the very low inherent ash and the favorable fly ash resistivity.

Once a power plant has been built, the cost of electricity or steam is aggregated into three cost areas: operating, maintenance and fuel costs. Envirocoal brings economic benefits to each of these.

Operating Cost
Envirocoal can be used to meet environmental regulations without the need for flue gas desulphurisation (FGD). This brings significant reductions in capital and operating costs by eliminating the need for a limestone scrubbing plant and its operating costs. Also in many cases it is possible to eliminate the cost of selective catalytic reduction (SCR) systems for NOx removal as Envirocoal’s emissions are low enough to meet the most stringent standards.

Maintenance Cost
Maintenance costs of pulverisers, coal pipes, boiler tubes and other equipment along the coal path are reduced because of the lessened impact of the ash.

Fuel Cost
Market conditions determine the fuel cost, but with its expanding sales Envirocoal has shown itself to be competitive with higher-rank coals on a per unit of energy basis.

Storage
Envirocoal is a low-sulphur, low-ash coal that is easily stored with no detrimental effect to the environment. Leaching of the coal by rainwater during storage will occur, however the characteristics of trace metals, chemical species and radionuclides in the coal are among the lowest in the world.

Combustion
Envirocoal is a reactive coal and in most cases it is not necessary to grind the coal as finely as other coals for it to burn well. This means less energy is required to grind the coal. The high surface area, combined with higher volatile matter, results in excellent ignition, stable combustion and near complete char burnout. Combustion efficiency is often greater than 99.7%.

Ash
In Envirocoal, the amount of silica and alumina can be less than 60%, with pyrites being low or non-existent and ash particles being relatively small in size. This results in much less wear and erosion when using Envirocoal. Meanwhile, ash deposition is always a potential problem in coal-fired furnaces. The deposition rate from Envirocoal is much lower and sometimes non-existent. The experience from using the coal is that slagging is generally very low. The use of wall blowers and soot blowers, which reduce thermal efficiency, can be reduced significantly. Fouling is non-existent.

Read More About Adaro
  • Adaro at a Glance

    Exploring for coal; mining and selling it; generating power from it. Understand our business in seconds.

  • Our Vision

    Adaro strives to deliver positive energy from Indonesian coal. See how our strategy helps us do that.

  • Our Cleaner Coal Products

    Our core product, Envirocoal, is the world’s cleanest solid fossil fuel. Find out what makes it remarkable.

  • Our Reserves and Resources

    We control or have options on 12 billion tonnes of coal in Indonesia. See where it is and how we plan to mine it.

  • Our Market and Customers

    We sell our coal to power providers and cement manufacturers in Indonesia and worldwide. Find out who and where.

  • Our Corporate Structure

    We own or have stakes in 21 vertically integrated subsidiaries. Find out how they operate and fit together.

  • Our Leadership Team

    We have a unique ownership based on five key shareholding families. Get to know our directors and commissioners.

  • Our History

    Adaro has come a long way since first breaking ground. See how it has grown into one of Indonesia’s largest companies.

  • Our Governance

    Adaro insists on world-class governance principles and standards, ensuring the best service for shareholders.

  • Awards for Adaro

    Adaro is consistently recognized for quality in mining, environmental care and as an employer. Read about our successes.

  • FAQs

    How do we find our coal? What CSR do we do? What is it like to work at Adaro? Find answers to these and more.

  • Glossary

    FGD, demurrage, overburden, GAR, panamax, calorific value: demystify coal’s complex terminology.

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