Indonesia's biodiesel capacity nears 4 million MTPA

Indonesia’s biodiesel production capacity will reach 3.95 million metric tons per annum (MTPA) by the fourth quarter of 2007, of which state-owned oil and gas company PT Pertamina expects to use about 1 million MTPA for blending with diesel fuel, Endang Alwin, a marketing general manager at the company said. Indonesia and neighboring Malaysia are the world’s top two producers of palm oil, a biodiesel feedstock. Growing biodiesel demand in Europe has spurred Indonesia to sign contracts with 58 parties for biodiesel projects in the country. As Indonesia itself does not have any mandates for the introduction of biofuels in the domestic market, most of the projects so far are geared for the export market.  (February 5, 2007)