Implementation of Coal Blending as an Effort to Improve Security of Coal Supply: A Case Study of XYZ SPP

Abstract

PT ABC, a sub-holding of a state-owned company that manages all aspects of electricity in Indonesia, is facing difficulties in obtaining suppliers willing to sell Middle Rank Coal (MRC) that meets the specifications required by the XYZ Steam Power Plant (SPP). The aim of this research is to analyze and determine the coal blending ratio between High Rank Coal (HRC) and Low Rank Coal (LRC) to achieve MRC that meets the specifications required by the XYZ SPP, as an effort to enhance security of supply. Additionally, the research aims determine the minimum total landed cost for implementing this coal blending. The methodology used includes data collection and analysis, calculation of the coal blending ratio system of linear equations in two variables using the substitution method by carrying out repeated experiments, selection of the appropriate Coal Blending Facility (CBF) and transportation mode, and calculation of the total landed cost for the coal blending supply to the XYZ SPP,  which includes Freight On Board coal prices plus blending facility and transportation costs. The research results show 52 MRC coal blending compositions from HRC and LRC coal suppliers in East Kalimantan with the minimum price at a calorific value specification of 4,400 kcal/kg GAR, using a sea base (floating) independent CBF A provider at Muara Berau Anchorage and a panamax vessel transportation mode. This research is expected to contribute to enhancing security of supply to the XYZ SPP, and PT ABC is expected to obtain a shortlist of suitable suppliers for implementing coal blending deliveries to the XYZ SPP.