Elnusa to build $20 million biodiesel plant

PT Elnusa, a subsidiary of state-owned oil and gas company PT Pertamina, will join hands with PT Indo Biofuels Energy to build a biodiesel plant at Merak in Banten province, Investor Daily Indonesia newspaper reported Saturday.

The plant with a capacity of 60 million-liters will need an investment of US$20 million.

The plant is scheduled to start production and enter into the market in April 2007.

Both Elnusa and PT Indo Biofuels signed on Friday an agreement on cooperation at El nusa?s office in Jakarta. The agreement was signed by PT Elnusa president director Rudy Radjab and PT Indo Biofuels president director Purnadi Djojosudirdjo.

The plant?s output will be supplied to PT Pertamina. ?We have already obtained an assurance from Pertamina to fulfill its biodiesel needs,? said Elnusa vice president for business development Ratiyan Abdurahman.

The plant in Merak will start production at a low level to until 500 tons per day and it will be done in phases of three to four years. In the first phase, the plant will start production at a rate of 50 tons per day.

?At the initial stage, we deliberately use CPO as raw material because it is already available in the market,? Ratiyan said. (*)