Cost Estimation of Coal Utilization Technology for Coal Bed Methane (CBM) Using H₂O₂

Abstract

Indonesia holds 31.95 billion tonnes of coal reserves dominated by low-rank grades, while the 2060 net-zero-emission commitment demands reduced conventional coal use. Hydrogen peroxide-assisted coal bed methane (CBM) technology converts coal into methane within the seam without lifting it to the surface. Its effectiveness is proven at laboratory scale, yet no operating cost estimate exists. This study develops one and identifies the cost-determining components. We built a bottom-up deterministic model from secondary data for a notional installation processing one tonne of low-rank coal per year in the South Sumatra Basin, Indonesia, at 2025–2026 price levels in rupiah. Capital expenditure was excluded as the technology has never been deployed commercially. Reagent requirements followed a published solid-to-liquid ratio of 17 g lignite per 4 L of 0.3 percent H₂O₂ solution, yielding 235,294.12 L per tonne. The two unit bases were held separately: annually fixed and volume-proportional. The results total IDR 11,126,119,382, comprising IDR 8,345,589,114 in fixed cost (75.01 percent) and IDR 2,780,530,269 per tonne in solution cost (24.99 percent). Theoretically, hydrogen peroxide contributes only 0.165 percent of total cost, while diluent water contributes 97.32 percent of solution cost, contradicting the assumption that oxidant efficiency governs MECBM economics; geometry, not chemistry, governs the economics. Practically, the study redirects optimization effort towards the solid-to-liquid ratio and the choice of diluent medium.