Medco to develop biofuel project in Papua

PT Medco Energi Internasional Tbk is planning to develop biofuel energy in Papua. The investment plan will be realized if the bioethanol pilot project in Lampung, Sumatera is successful, a company executive said.

?If the pilot project in Lampung in the next one or two years is successful, we will develop similar project in Papua as Papua has huge land area,? said Hilmi Panigoro, Chief Commissioner of Medco Energy on the sideline of Renewable Energy Congress in Bali.

Through its subsidiary, PT Medco Ethanol Lampung, Medco has produced bioethanol at a rate of 180,000 liters per day, utilizing cassava as raw materials. The output is sold directly to traders.

He said Medco has set aside US$30 million to develop renewable energy projects in Papua. Portion of the funds is currrently spent to develop a pilot project on 200 hectares of land. The purpose of the project is to determine what will be right crops or plants to be developed in Papua.

Medco is planning to develop various projects in Papua, including biofuel, bioethanol energy, palm oil plantation and industrial forest projects. (romel/roffie)