Plantation firms to produce biodiesel for Pertamina

Three state plantation firms–PT Perkebunan Nusantara (PTPN) III, IV and V–will begin construction of three biodiesel plants in Dumai, Riau province, before the second half of the year. Investment in the three plants is expected to reach Rp400 billion (US$44.4 million). “The plants will be finished in the next 18 months. In 2012, the plants will start producing biodiesel,” PTPN IV President Director Dahlan Harahap said on the sidelines of the signing of an MoU between the three firms with state oil and gas producer PT Pertamina. Pertamina has agreed to purchase the biodiesel from the plants and to prepare a storage facility for the biodiesel at the port in Dumai. Harahap said each of the plants has a capacity to process 100,000 tons of oil palm fruit bunches annually. Capacity is expected to be doubled by 2014. (April 9, 2010)