Indonesia, Malaysia 08' biodiesel expected 1m t/yr

28 September 2006 08:38  [Source: ICIS news]

SINGAPORE (ICIS news)--Biodiesel production in Indonesia and Malaysia would rise to at least 1m tonnes in 2008 when Bakrie Sumatera Plantations (BSP) completes its $25m (Euro19.7m) biodiesel project, a company spokeswoman said on Thursday.

 

The Indonesian company is building a 100,000 tonnes/year plant on Batam Island which is expected to go on stream by July 2008, she added. It could start exporting its output one month after startup, she said.

 

“We have made a conservative estimate that the project will take no longer than 5 years to break even,” she added.

 

“We have identified our major export markets and have started intensive communications with some potential buyers,” she said, without naming the markets or the buyers.

 

Indonesia imports 30% of its diesel requirement and the new biodiesel plant could also help reduce imports, the spokeswoman said.

 

The country’s diesel consumption reached 27m kilolitres in 2005 and this is growing at 5% each year.

 

Joint venture company Bakrie Rekin Bioenergy will operate the new plant, the spokeswoman said. BSP holds a 70% stake and the remainder is taken by Rekayasa Industri (Rekin), an industrial engineering and construction company which will provide engineering and procurement services and construct the plant.

 

About 1,750 hectare of oil palm plantation will be needed to supply raw materials to the proposed plant, according to BSP.

 

The company which started with a rubber plantation back in 1911, now owns a total 150,000 hectare of land in Sumatra and Kalimantan. Just over one third of this is currently in use, comprising 32,000 hectare of oil palm and 19,000 hectare of rubber.

 

ICIS news previously reported that BSP planned to sell $110m of secured notes to repay its debt and fund expansion. The company does not have any other oleochemicals projects in the pipeline, the spokeswoman said.

By: Shibu Itty Kuttickal
+65 6780 4359

< previous article(VIDEO - ICIS news Europe Lunchtime Bulletin 27 October 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly