Indonesian, S. Koreans to build bioethanol plant

PT Rajawali I, a subsidiary of Rajawali Nusantara Indonesia, will team up with South Korea’s Choi Biofuel Company to build a bio-ethanol plant in Pasuruan, East Java, Indonesia, in June. The project, which will have an annual capacity of 40,000 kiloliters, will cost an estimated US$150 million, chairman of the association of spirit and ethanol producers (Asendo) Agus Purnomo said. Construction of the joint venture project is expected to be completed in 2008 bringing the country’s total production capacity for bioethanol to 200,000 kiloliters a year. Under an agreement between the two companies, Choi Biofuel will finance the project and Rajawali I will invest US$200 million to provide 10 hectares of land and supply of molasses as feedstock, bringing the total cost of the project to US$350 million.  (February 14, 2007)