Medco to build bio-ethanol plant in Lampung
Thursday, December 15 2005 - 05:41 PM WIB
JSX-listed energy firm PT. Medco Energi Inetrnasional Tbk. announced on Thursday that it had formed joint venture to construct Indonesia?s first multi-feedstock bio-ethanol production plant in Lampung province with an investment of US$34 million.
The company said it would hold 85 percent stake in PT.Medco Ethanol Lampung while its partner PT.Trade Bioenergy would hold the balance. Plant construction is exepceted to start in the third quarter of 2006.
The plant would produce ethanol from cassava-derived starch as well as sugar cane molasses. Plant designed capacity would be 60,000 kiloliters per annum. At the fisrt stage, the plant will produce industrial-grade methanol by the end of third quarter of 2007 with main markets in Singapore and Japan. The ccompany expected the plant would eventually be able to produce fuel-grade bio ethanol.
The company said that financing agreement with bank is currently in progress. (alex)