Biofuel on the News

Thursday, January 11, 2007

MoUs on biofuel development to be signed

Source Antara 11-01-2007

JAKARTA - Several Memorandums of understanding (MoUs) on biofuel development was scheduled to be signed here on Tuesday with a total value of investment worth more than 10 billion US dollars.

Some 14 ministers and governors were expected to be present in the signing of the MoUs at the Energy and Natural Resources Department.

The development of biofuel would involve more than 50 companies, according to Head of the Biofuel Development Acceleration Team Al Hilal Hamdi.

The US$10 billion fund would be used to finance activities and processes from plantation, factory processing up to marketing of biofuel, he said.

Most of the MoUs would be integrated from the sectors of on-farm until off-farm to absorb more job opportunities.

Following the MoU signing, investors would conduct feasibility studies for around three to four months and would be followed with permit processing.

"We hope that the investment could be started this year," he said.

It was reported earlier that state-owned electricity company PT Perusahaan Listrik Negara (PLN) planned to operate biofuel-fired power plants next year with a combined capacity of 58 megawatts, an energy development official said.

The power plants to be located in several regions such as Lampung, West Nusa Tenggara, East Nusa Tenggara and South Kalimantan would use palmoil as their main energy source, Alhilal Hamdi said recently.

Hamdi who is also president of PT PLN's board of commissioners said the plan was part of the company's efforts to maximize the use of alternative energy sources in its operations.

Due to the high price of oil, biofuel and other alternative energy sources would be the main alternative to support national industries and the economy in general.

He said the use of biofuel would also help improve the economy of farmers producing palm oil, cassava, sugarcane and jatropha.

Source Antara 11-01-2007. Also available online (&p=Home/1&fm_formmanager_articlecategory_Article_gbpage=2&intrafm_formmanager_articlecategory_Articleid=1168506406_44)


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