Pertamina, Nullarbor in biodiesel venture

ASX-listed firm Nullarbor Holdings Ltd. announced on Friday that it had entered into exclusive agreement with Pertamina for the establishment of biodiesel manufacturing plants in Indonesia.

Under the agreement, Nullarbor spend an estimated US$600,000 to fund the detailed feasibility study for the construction and operations of biodiesel refineries with a total annual capacity of up to 1 million tons per annum of feedstock throughput.

Preliminary studies on the project had been completed by a Singaporean firm Ignition Energy Pte. Ltd. including feedstock sourcing, technology provision, site selection and construction participants.

Detailed FS would be completed within 3 months and financing within 6 months and move immediately to the awarding of contracts with a view to the first plant being commissioned within 24 months after completion of the study, the company said.

The company said that once in full production capacity, revenue from the project could reach $650 million per annum.(alex)