PTPN to produce biodiesel for Pertamina

Three state-owned plantation firms ? PT Perkebunan Nusantara (PTPN) III, IV and V -- will begin the construction of three biodiesel plants in Dumai, Riau province, in the first semester of the year.

The three firms are expected to spend about Rp 1.5 trillion (1US$ = Rp 9,060) for the three projects, Dahlan Harahap, president director of Perkebunan Nusantara IV, said in Jakarta on Thursday.

?The consruction of the plants is expected to take 18 months and the plants are expected to start producing biodiesel in 2012,? he said on the sidelines of the ceremony of signing an MoU between the three firms with state oil and gas firm PT Pertamina on Thursday.

Pertamina has agreed to purchase biodiesel from the plants and will prepare a storage facility for the biodiesel at the port in Dumai.

Dahlan said each of the plants has a capacity to process 100,000 tons of oil palm fruit bunches (TBS) annually. The capacity is expected to be doubled by 2014. (bernard)