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.
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.”
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.
