Pertamina & PTPN IV to jointly develop biofuel

State owned oil and gas firm PT Pertamina (Persero) and state owned plantation firm PT Perkebunan Nusantara IV (Persero) have agreed to cooperate in developing a biofuel integrated business.

The agreement was recently signed by Pertamina?s Director Afdal Bahaudin and PTPN IV?s Director of Plan and Business Development Memed Wiramihardja, Pertamina said in a press statement obtained by Petromindo.com on Monday.

Under the agreement, both firms will carry out a joint study on biofuel integrated business. The study is expected to be completed in April this year.

Memed said Pertamina pledged to support PTPN IV to integrate its upstream and downstream business. A business unit will thus be established to engage in the upstream and downstream business.

?The business will not thus not produce CPO but green diesel or biofuel,? Memed said.

Afdal said the business unit is expected to produce 10,000 barrels per day biodiesel.

He said the agreement reflected Pertamina?s commitment to developing renewable energy sources in the country in order to cut the imports of oil fuels.

Editing by Johannes Simbolon