Plantation firms to produce biodiesel for Pertamina

Nani Afrida, The Jakarta Post, Jakarta | Thu, 04/08/2010 10:29 PM

Three state plantation firms – PT Perkebunan Nusantara (PTPN) III, IV and V -- will begin the construction of three biodiesel plants in Dumai, Riau province, before the second half of the year starts.

The three plants are expected to absorb Rp 400 billion in total investment.

“The plants will be finished in the next 18 months. In 2012 the plants will start producing biodiesel,” PTPN IV president director Dahlan Iskan said on the sidelines of the signing of an MoU between the three firms with state oil and gas producer PT Pertamina on Thursday.

Pertamina has agreed to purchase the biodiesel from the plants and to prepare a storage facility for the biodiesel at the port in Dumai.

Dahlan said each of the plants has a capacity to process 100,000 tons of oil palm fruit bunches (TBS) annually. The capacity is expected to be doubled by 2014.