Four biodiesel plants will soon begin production

Four biodiesel plants are expected to begin production by the end of this year with combined production of about 410,000 tons a year, the association of the Indonesian Oleochemical Producers (Apolin) has said.

The association's chairman Kris Hadisubroto said in Jakarta Monday that the biodiesel plants, which would have production capacity of between 60,000 tons to 150,000 tons a year, were currently being built by PT Sumiasih, PT Musimas, PT Sinarmas and PT Mopoli.

"The construction works have been carried out since last year. The biodiesel plants are located in Bekasi and Medan," he was quoted as saying by Investor Daily without giving further detalis.

He estimated that the total investment for the four biodiesel plants reached about US$25 million.

He said that the operation of the four biodiesel plants, which would use crude palm oil (CPO) as raw material for the biodiesel production, would result in the decline in Indonesia's CPO exports which were estimated to reach 12.5 million tons this year.

But Kris said that the operation of the biodiesel power plants would not affect the country's overall CPO production . (*)