Medco Energi International, Indonesia’s largest upstream oil and gas exploration firm, plans to build a $34.13-million ethanol plant in Lampung province in 2006. This will be the first ethanol plant in the country.
The joint-venture facility between Medco and PT Trade Bioenergy Indonesia will have annual production capacity of 60,000 kiloliters (about 16 million gallons US) of ethanol targeted for export, with cassava-derived starch and sugarcane molasses as the feedstocks, Medco said in a statement.
Production will begin by the end of the third quarter of 2007, with the main markets to be Singapore and Japan.
Medco Ethanol Indonesia, a unit of Medco, owns 85% of the joint venture, PT Medco Ethanol Lampung. PT Trade Bioenergy Indonesia holds the remaining 15% stake.