State-owned plantation company PTPN X plans to produce bioethanol, which will entirely be sold to state-owned oil and gas firm Pertamina.
PTPN X Corporate Secretary Djoko Santoso was quoted by Kontan as saying Thursday that Pertamina has also agreed to give a good price for the bioethanol product, which will be used as feedstock for the production of renewable fuel.
PTPN X expects to be able to start the production of its new bioethanol plant in Mojokerto, East Java, end of this year. The facility, which will use molasses from sugar production, will have a production capacity of 30,000 kl per year.
Djoko said that bioethanol price is currently about Rp 9,000 per liter, while production cost is about Rp 5,400 per liter. If Pertamina indeed purchases the entire production, PTPN X stands to obtain about Rp 270 billion in revenue per year from the new bioethanol business, he said. (rei)
