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.
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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.
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