Indonesian Project

Indonesia Project
Using Solar Energy to Vitalize the Indonesian Economy
August 15, 2006

Preliminary
PT Sugico Graha
PT Sugico Mök Energy Indonesia
Indonesia Mök Companies

United States of America United States of America
Switzerland Switzerland
Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Purpose & Scope
To demonstrate how the nation of Indonesia may use
advanced solar energy and coal technology to meet its
immediate needs for clean reliable power and grow to
dominate the world’s economy in the future.
• Indonesia Energy Needs

• Impact of Mök Solar Technology
• PT Sugico Mök Energy Project
– Solar Electricity
– Coal to Liquids
– Methane to Methanol
• Indonesian long-term growth strategy
Who is William Mook?
Is a very smart, visionary, rocket scientist who has
successfully developed important technologies and
businesses and grown to advise those in government and
industry on a variety of technology and strategic policies.
• Attended undergrad school in aerospace engineering

• Used Navier-Stokes to predict pollution transport
• Invented the first lab automation products
• Created a successful lab automation company
• Invented the first computer based cash register
• Invented the first credit card scanner in gas pump
• Created a successful retail automation company & sold it.
• Since 1996 worked on perfecting advanced energy systems & attended graduate school
• Asked to speak to Clinton White House about Space Policy & Energy Policy
• Advised US Governors and Senators on Energy Policy
• Asked to speak to Bush Administration about Energy Policy in December 2004 & after.

Has a young daughter who is Swiss, and lives with her
mother in Switzerland. I live and work in the US.

I have worked continuously since 1996 to develop improved
energy systems. Primarily in solar energy, but in other areas
as well.

Why Indonesia?
Asked by PT Sugico Graha to develop an integrated Strategy
For Indonesia, which later developed into a Joint Venture
Arrangement between Sugico & Mök.

Indonesia Energy Needs
Indonesia is important to world energy markets because of its
OPEC membership and substantial, but declining, oil production.
Indonesia also is the world's largest liquefied natural gas (LNG)
exporter. - Source US DOE EIA

OIL
Indonesia currently holds

proven oil reserves of 4.7
billion barrels, down 13%
since 1994. Much of
Indonesia's proven oil
reserve base is located
onshore. The decline is due
mainly to the natural fall off
of aging oil fields
- Source US DOE EIA

NATURAL GAS
Indonesia has proven natural gas

reserves of 92.5 trillion cubic feet
(Tcf). Most of the country's natural
gas reserves are located near the
Arun field in Aceh, around the
Badak field in East Kalimantan, in
smaller fields offshore Java, the
Kangean Block offshore East Java,
a number of blocks in Irian Jaya,
and the Natuna D-Alpha field, the
largest in Southeast
- Source US DOE EIA

COAL
Indonesia has 50 billion short tons

of recoverable coal reserves, of
which 58.6% is lignite, 26.6% is
sub-bituminous, 14.4% is
bituminous, and 0.4% anthracite.
Sumatra contains roughly two-
thirds of Indonesia's total coal
reserves
- Source US DOE EIA

ELECTRICITY
Indonesia has installed electrical

generating capacity estimated at
21.4 gigawatts, with 87.0% coming
from thermal (oil, gas, and coal)
sources, 10.5% from hydropower,
and 2.5% from geothermal.
- Source US DOE EIA

SUMMARY
Industrial production growth rate: 4.8% (2005 est.)

Electricity - production: 120.2 billion kWh (2004)
Electricity - consumption: 105.4 billion kWh (2004)
Oil - production: 1.061 million bbl/day (2005 est.)
Oil - consumption: 1.084 million bbl/day (2005 est.)
Oil - proved reserves: 4.6 billion bbl (2005 est.)
Natural gas - production: 83.4 billion cu m (2005 est.)
Natural gas – consumption: 22.5 billion cu m (2005 est.)
Natural gas - exports: 7.5 billion cu m (2005 est.)
Natural gas - proved reserves: 2.557 trillion cu m (2005)

1 ton Coal
Water PT Sugico Mök Energy
990 lbs
Fuel Gas Return Line

Coal Coal Coal
Grinding Washing Drying
Fractional Distillation
•
Bergius Reactor
Water
Clean up Hydrotreat
Waste
100 lbs Electricity Hydrogen
2.5 MWh 110 lbs Fuel
Electrolysis
Hydrocrack
Ash
Vapor
Asphalt Fuel
Mix 100 273 gal
lbs
Asphalt Tar
400 lbs 200 lbs
PT Sugico Mök Energy
TECHNOLOGY
Solar Water
UNLIKE ANY OTHER
Panels
HIGH VOLTAGE DC LINES
Hydrogen
Inter- Peak NaS Electro-
Intertie
connect Power Batteries lyzer
LOAD
LEVELING Inter-
connect
HIGH VOLTAGE
BUY
AC LINES
SELL
Conventional
Load Mains
Generators

TECHNOLOGY
CONCENTRATING SOLAR PANELS

Impact of Mök Technology
SOLAR ENERGY
Another Natural Resource is Sunlight falling on Indonesia. Cost-

effectively collecting solar energy on just 200,000 ha radically
transforms Indonesia’s energy picture.

RESOURCES
Convert 1 ton of low-grade coal to 6.2 tons high quality liquid fuels
PT Sugico Mok Energy has 900 million tons committed to an early stage
project which is equivalent to 5,580 million barrels of liquid fuels more
than doubling Indonesia’s current reserves.
Conversion of South Sumatra’s 22,000 million tons of coal to oil, is

equivalent to 136,400 million barrels of liquid fuels! Increasing reserves
29x
Conversion of ALL of Indonesia’s coal, 50,000 million tons of coal to oil,

is equivalent to 310,000 million barrels of liquid fuels! Increasing
reserves 66x.

FAQS
It costs more for Mök to process a ton of coal than SASOL, but due to high yields
(6.2 bbl/ton vs 2.5 bbl/ton) the cost per BARREL is less!
Mök has higher yields because Mök does not BURN the coal. The process is
energized by sunlight, not coal.
Mök process does not produce CO2.
Divide market cap of Exxon by its proven reserves and obtain $28 per barrel in the
ground. Mök’s cost of $18 per barrel, give a net benefit of $62 per ton in the
ground. SASOL’s $35 per barrel give a NEGATIVE net value to coal in the
ground.
Solar panels can operate on played out surface mines. Such mines are not any
dirtier than any other area since mining activity is stopped.
Clean panels are important to efficient operation, but this cost factor is small
compared to other factors, even in Sumatra.

FAQS
$0.07 per peak watt is 1/100th the cost of conventional solar panels.
Mök achieves this low-cost by reducing silicon the active ingredient in solar panels
by a factor of 626, while maintaining incredibly low costs in balance of systems.

Phase I Plant
Item Cost Units
Liquid fuel 21,025Bbls/day
Coal 3,447Ton/day
Facility Cost $693.00Millions
Labor 1,162People
Sales/year $537.56Millions
Labor/year $6.94Millions
Coal/year $56.65Millions
Maintenance $23.13Millions
Capital Cost $48.88Millions
Margin $401.96Millions
Value $4,419.00Millions

Sugico Mok Project
COAL TO LIQUIDS
2011 2015 2019
Initial Investment Phase II

Phase I Indonesia
$693 million Plant
Plant (export mkt)
30% (full scale)
Total Value Total Value Total Value
$4,419 milion $170,000 milion $600,000 milion
30% Value 30% Value 30% Value

$1,325 million $51,000 million $200,000 million

PHASE I
INPUTS
7,950,000 solar panels
Variable Load Electrolyzer
Hydrogen Management System
Coal to Liquids Conversion
On 2,550 ha land
Using 3,225 tons coal per day
OUTPUTS
20,000 b/d of liquid fuels @ $60.00/bbl = $1,200,000/day
820,000 kWh/day electricity @$0.04/kWh = $33,000/day
COST: $693 million (15% of value)

VALUE: $4,419 million

PHASE II
125,000 tons of coal per day

775,000 barrels of liquid fuel per day
165 billion peak watts
285 million panels
91,000 hectares
COST: $27 billion (bankable, against proven asset)

VALUE: $170 billion @$60/bbl
Provides 75% of the nation’s current consumption!

Provides ability to earn $17 billion in revenue

Indonesian Long Term Growth
IMPACT ON INDONESIAN ECONOMY BY 2015
Adds $25 billion per year to Indonesian ‘bottom line’

Eliminates energy shortages and lowers energy costs
Increases jobs and productivity
Increases rate of capital formation
Under the right political conditions:
Provides for CONTINUOUS 9% PER YEAR GROWTH after 2015
YEAR INCOME YEAR INCOME
2006 1.00 2025 3.64
2015 1.53 2030 5.60

2020 2.37 2035 8.62*

Indonesian Plan
Large solar power arrays tie to the rest of the nation with
HVDC power lines. Renewable hydrogen converts Indonesian
coal and Natuna gas to liquid fuels for export to China and Japan

Logic of Empire
Island nations have always been Imperial nations
due to the confluence of economic, cultural, and
strategic factors.
Island nations are those nations that have long

borders relative to their areas
Nations that have large native resources export.
Nations that have small native resources import

Merideth & Lebard The Coming War with Japan

Logic of Empire

Logic of Empire

Logic of Empire

Logic of Empire

Logic of Empire

Logic of Empire

Logic of Empire

TECHNOLOGY
UNLIKE ANY OTHER
• REDUCED PHOTOCELL COST - Dramatically reduces

the cost of solar panels by reducing the total area of
photocells
• REDUCED PANEL COST - Uses arrays of low-cost

water-filled lenses to concentrate sunlight while
simultaneously cooling photocells.
• ADVANCED DESIGN - Uses advanced optics to provide

a stationary high performance concentrator.

TECHNOLOGY

TECHNOLOGY

TECHNOLOGY

TECHNOLOGY

TECHNOLOGY

TECHNOLOGY
UNLIKE ANY OTHER
• REDUCED BATTERY COSTS - Dramatically

reduces the cost of batteries by choosing
materials that are 1/10th the cost of lead acid.
• IMPROVED BATTERY LIFE - Uses sodium/sulfur

combination having 11x MJ/kg of lead acid.

TECHNOLOGY
UNLIKE ANY OTHER
Sodium Sulfur Batteries
Developed by Ford in
1965
Used for load leveling by

Utilities
Used by Mök to store

excess solar power

TECHNOLOGY
Solar Water
UNLIKE ANY OTHER
Panels
HIGH VOLTAGE DC LINES
Hydrogen
Inter- Peak NaS Electro-
Intertie
connect Power Batteries lyzer
LOAD
LEVELING Inter-
connect
HIGH VOLTAGE
BUY
AC LINES
SELL
Conventional
Load Mains
Generators

1 ton Coal
Water PT Sugico Mök Energy
990 lbs
Fuel Gas Return Line

Coal Coal Coal
Grinding Washing Drying
Fractional Distillation
•
Bergius Reactor
Water
Clean up Hydrotreat
Waste
100 lbs Electricity Hydrogen
2.5 MWh 110 lbs Fuel
Electrolysis
Hydrocrack
Ash
Vapor
Asphalt Fuel
Mix 100 273 gal
lbs
Asphalt Tar
400 lbs 200 lbs
Indonesian Power Needs
SHIFTING CONSUMPTION
• Maglev based Personal Rapid Transit
• Much like an automobile, but rented like a

taxi – without a need of driver.
• Far less expensive than autos, reduces

fossil fuel use, eliminates pollution,
reduces accidents improves quality of life.
• Maglev Tracks provide long-distance

conduit for solar power energy
transmission.
• Compatible with existing roadways and

railways
• Automated operation accessible to all, yet

private ownership is possible for those who
can afford it.
Indonesian Plan
Large solar power arrays power the nation. HVDC/Transport lines
tie the nation together. Hydrogen & Hydrocarbon allow Indonesia
to gain quick economic dominance. Abundant labor, and modern
communications allow expansion of economic influence.

Indonesian Project

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Indonesia Project

Using Solar Energy to Vitalize the Indonesian Economy

August 15, 2006

Indonesia Mök Companies

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

• Indonesia Energy Needs

• Attended undergrad school in aerospace engineering

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Indonesia currently holds

- Source US DOE EIA

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Indonesia has proven natural gas

- Source US DOE EIA

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Indonesia has 50 billion short tons

- Source US DOE EIA

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Indonesia has installed electrical

- Source US DOE EIA

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Industrial production growth rate: 4.8% (2005 est.)

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Fuel Gas Return Line

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Another Natural Resource is Sunlight falling on Indonesia. Cost-

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Conversion of South Sumatra’s 22,000 million tons of coal to oil, is

Conversion of ALL of Indonesia’s coal, 50,000 million tons of coal to oil,

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Mök process does not produce CO2.

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

2011 2015 2019

Initial Investment Phase II

30% Value 30% Value 30% Value

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

COST: $693 million (15% of value)

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

125,000 tons of coal per day

COST: $27 billion (bankable, against proven asset)

Provides 75% of the nation’s current consumption!

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Adds $25 billion per year to Indonesian ‘bottom line’

YEAR INCOME YEAR INCOME

2006 1.00 2025 3.64

2015 1.53 2030 5.60

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Island nations are those nations that have long

Nations that have large native resources export.

Nations that have small native resources import

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved

Copyright (c) 2006 PT Sugico Mok Energy All Rights Reserved