PT Eterindo to supply biodiesel to Pertamina
Monday, May 15 2006 - 02:33 AM WIB
According to Pertamina?s expert on marketing techniques and development of oil products Arman, Eterindo is the sole biodiesel producer which signed the contract with Pertamina to supply 24,000 metric tons of biodiesel per year.
?This total (24,000 metric tons) is the excess production capacity of Eterindo after it fulfills its market demand,? Arman said after the road test using Biodiesel B10 from Medan to Bogor.
Arman mentioned that Eterindo?s biodiesel production capacity is 110,000 metric tons per year. But at present, there is no single biodiesel producer who has huge production capacity in order to guarantee constant supply.
In Jakarta, only three gas stations were selected to sell a mixture of diesel and biodiesel. PT Pertamina schedules to start selling biodiesel in the gas stations by May 20.
?In the first stage, Pertamina will supply 24,000 liters of biodiesel per day at a price of Rp 4,500 (less than US$1) per liter,? Pertamina spokesman Mohamad Harun told The Jakarta Post.
The price of subsidized diesel fuel is Rp 4,300 per liter.
Biodiesel is a blend of petroleum diesel with oils extracted from plants such as oil palm or jatropha. It?s sold at a concentration of 5 percent plant oils to 95 percent petroleum diesel (called B5), or 10 percent plant oils to 90 percent petroleum diesel (B10).
Harun said biodiesel would be sold at gas stations in Kemayoran in Central Jakarta, Mampang in South Jakarta and Pecenongan in Central Jakarta, each of which has a capacity of 8,000 liters.
?The three stations will be our pilot projects. We will increase the supply once the public demand for biodiesel rises,? he said.
In an effort to boost customer awareness, he said, the company will hold public campaigns to explain the benefits of using biodiesel.
?Biodiesel will, improve engine performance and vehicular, emissions, causing less air pollution,? he said. (*)