Government plans to build eight biofuel plants

The government is considering building at least eight biofuel plants within the next few years as part of its program to develop the renewable energy in the country, Investor Daily reported on Monday.

The plan was unveiled by Minister of Industry Fahmi Idris after a cabinet meeting with President Susilo Bambang Yudhoyono in Magelang, Central Java on Friday.

Fahmi said that four of the eight biofuel plants would each have a production capacity of up to 6,000 tons a year while the other four would have the capacity to produce about 300 tons a year, respectively.

He said that the construction of the six biofuel plants which would use either crude palm oil, cassava or castor oil as its raw materials would need investment of about Rp 10 trillion.

According to Fahmi, the construction of the biofuel plants would involve farmers which would be given the opportunity to take part in the development of plantations to provide the raw materials for the biofuel production.

There are at least four companies currently developing biofuel plants. They include PT Sumiasih which is constructing a biofuel plant with a capacity of 60,000 tons a year, PT Sinar Mas (with capacity of 100,000 tons a year), PT Musimas (with a capacity of 100,000 tons a year) and PT Mopoli (with a capacity of 150,000 tons a year). (*)