4 days ago
- Business
- South China Morning Post
Indonesia should adopt EVs, draw lessons from failed methanol project in China, experts say
Indonesia should consider embracing electric vehicles (EVs) as an alternative to its plan to construct a costly methanol production facility, after a failed similar venture in China, according to energy finance specialists.
Advertisement
The ageing vehicle fleet in Southeast Asia's biggest economy may not be suitable for methanol fuel blends as the country's humid climate can cause
fuel condensation, the Ohio-based Institute for Energy Economics and Financial Analysis said in a report on Wednesday.
While a methanol-blended fuel could reduce emissions and improve performance, these benefits were offset by lower energy content and higher material corrosion, it said, noting the risks flagged in a 2021 white paper by the International Council on Clean Transportation. EVs offered a more sustainable solution, the non-profit institute added.
'Expanding the use of EVs, particularly motorcycles, offers a lower-risk, less complex and cost-effective solution than blending methanol,' said Ghee Peh, the institute's Asia-based specialist, who wrote the report. 'Neighbouring countries, such as Vietnam, have already built EV charging networks.'
Ghee Peh, an Asia-based energy finance specialist at the Institute for Energy Economics and Financial Analysis. Photo: Handout
Indonesia was building a US$1.2 billion coal-based methanol plant in East Java, aimed at boosting biodiesel output, with target completion in 2027, the institute said, citing a Jakarta Post report. The nation faces a 2 million tonne annual deficit in methanol output. The government has not provided details of the plant's gas source.
