December 02, 2008

Kobe Steel plans USD 93 million lignite research site - Nikkei

Nikkei English News reported that Kobe Steel Ltd is planning to invest more than JPY 10 billion (USD 93 million) to build a facility in Indonesia that tests the feasibility of refining low grade coal for power generation.

Nikkei reported that the plant will research whether lignite, or brown coal, can be refined into a cheaper fuel source for power mills. It said that lignite's tendency to self combust and its 30% to 50% water content make it unsuitable for generating heat.

Nikkei added that Kobe Steel expects to complete the facility by October and plans to build a processing plant that will produce 2 million tonnes a year of refined lignite as early as 2010.