Indonesia's biodiesel output soars

Indonesia’s biodiesel output is estimated to reach 750,000 tons this year, up from around 180,000 tons, as more green fuel production comes on stream, according to Alhilal Hamdi, head of the country’s national team for biofuel development. Production is expected to increase to 1.5 million tons in 2008, as installed capacity rises to 1.8 million tons. Indonesia is the world’s second largest palm oil producer and exporter after Malaysia. Indonesia’s vast land resources and cheap labor have attracted several foreign companies to enter the Indonesian biofuel industry, including Malaysia’s Golden Hope Plantations, Genting Bhd and Sime Darby Bhd and Singapore’s Wilmar Holding Pte. Ltd. and China National Offshore Oil Corporation (CNOOC). Hamdi said that planned investments in biofuels projects in the country now totals US$12.4 billion. The government has said it plans to designate up to 6.5 million hectares of uncultivated land for the development of biofuel feedstock plantations in an effort to produce enough biofuels by 2010 to replace 10% of the country’s total oil-based fuel consumption of 70 million kiloliters. (January 12, 2007)