|
China's largest offshore oil producer by output, CNOOC, plans
to build three biodiesel plants in West Kalimantan this year, a
government official says.
Evita H. Legowo, an assistant to the energy and mineral resources
minister and also the first secretary of the National Biofuel
Development Committee, said Sunday the plan was part of the firm's
commitment to invest in Indonesia's renewable energy sector following
the signing of a memorandum of understanding (MOU) with the government
in January.
According to the MOU, the total investment is expected to reach US$5
billion.
The Chinese oil producer was among investors who signed agreements
worth $12.2 billion with the government for the development of
renewable energy, including biofuel, in early January.
Under the $5 billion deal, CNOOC, which is teaming up with Hong Kong
Energy and local company Sinar Mas Resources and Technology, struck the
biggest investment value.
"Chinese investors have shown their interest in investing. On Saturday,
representatives from Chinese companies came to my office to discuss
their plans to invest here," Evita told The Jakarta Post, without
further elaboration.
M. Zeet Hamdy Assovie, head of West Kalimantan's Capital Investment
Board, told Antara that the three plants would be built in the
districts of Sanggau, Sambas and Ketapang.
The province of West Kalimantan, Indonesia's second largest producer of
crude palm oil (CPO) -- the major feedstock for biofuel -- boasts
400,000 hectares of palm oil plantations.
Indonesia's palm oil plantations cover 5.5 million ha of land.
Indonesia is the world's second largest CPO exporter after Malaysia.
This year, Indonesia, which produces 15-16 tons of CPO each year, is
projected to surpass Malaysia by producing 17.1 million tons.
Under the government's biofuel promotion plan, Indonesia will boost its
use of biofuels to 5.29 million kiloliters by 2010 and 9.84 million
kiloliters by 2015.
|
