PLN, BPPT will build biodiesel power plant

State-owned electricity firm PT Perusahaan Listrik Negara (PLN) has signed a memorandum of understanding (MoU) with the Agency for the Assessment and Application of Technology (BPPT) regarding a pilot project to build a power that will use biodiesel, the Investor Daily Indonesia newspaper reported in its Friday edition.

The plant will be build in Lampung province.

PLN?s deputy director of primary energy Tonny Agus Mulyantono said that the MoU was signed by both parties on Wednesday and the signing was also witnessed by State Minister for State Enterprises Sugiharto.

?We will arrange (facilities for) the power plant and the BPPT will provide the technology,? Tonny said.

According to Tonny, PLN will build the plant with a capacity of 200 kWh. A visit to the location will be arranged next month and after two months the construction of the plant will begin.

?It (the plant) will use 100 percent pure biodiesel from olein oil,? he said.

Tonny said the power plant will generate electricity on commercial basis after six months or 3,000 hours after the plant started its operations.

?If it succeeds, it (the model) will be used in other power plants, which currently generate power through oil.? he said.

However, Tonny didn?t say which power plants will be converted to biodiesel. (*)