04 March 2013 19:52 [Source: ICIS news]
HOUSTON (ICIS)--Celanese said on Monday that it will begin planning fuel ethanol projects in Indonesia with Pertamina, the state-owned energy company there.
In July 2012, the two firms began talking about working on projects using Celanese’s patented TCX technology, which allows it to produce ethanol from natural gas or coal by using acetic acid as an intermediary - but not in the US.
According to the US Renewable Fuel Standard (RFS), ethanol derived from natural gas is illegal because the gas is technically not renewable.
Celanese said today it has signed a memorandum of understanding with Pertamina to set up a joint venture to build projects in Indonesia using the TCX technology, though the terms have not been completed.
The two companies expect to have the first site selected and begin the permitting and signing of coal supply and partner agreements by the end of 2013, Celanese said.
The companies expect production of fuel-grade ethanol by their joint venture will begin roughly 30 months after final investment decisions have been made by each company and the necessary government approvals are in place.
Celanese has already begun modifying a plant in China so it can produce industrial ethanol from the TCX process.
In July 2012, the Chinese government approved Celanese’s request to modify a plant in Nanjing to produce 275,000 tonnes/year of industrial ethanol based on the TCX technology.
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