Indonesia plans four biodiesel pilot plants

April 6, 2006
The Indonesian government plans to build four pilot biodiesel plants in 2006, aiming to use them as models to promote alternative energy.

Eric Watkins
Senior Correspondent

LOS ANGELES, Apr. 6 -- The Indonesian government plans to build four pilot biodiesel plants in 2006, aiming to use them as models to promote alternative energy.

The plants will be constructed in Kalimantan and Sumatra by yearend at a combined cost of about $33 million. They will produce 6,000 tonnes/year of biodiesel from crude palm oil and castor oil.

The plants will be near existing oil palm plantations and planned castor-oil plantations. The agricultural ministry also is in discussions with 14 other regions with a view to establishing new plantations to provide raw materials for more biodiesel plants.

The new and projected facilities are part of government efforts to reduce the country's dependency on oil from 60% of the total energy mix to 30% by 2025. Alternative energy sources, such as biodiesel, are expected to account for around 10% of the total, with the remainder made up by coal and natural gas.

Contact Eric Watkins at [email protected].