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Ministry expects $1.2b ethanol, methanol factory project to be complete in 2027
The factory, designated as a national strategic project (PSN), would help boost biodiesel production in the country.
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Agriculure Minister Andi Amran Sulaiman fills B50 biodiesel fuel into a road-test vehicle during a softlaunch ceremony marking the use of B50 at PT Jhonlin Agro Raya biodiesel factory in Batulicin, Tanah Bumbu regency, South Kalimantan, on Aug. 18, 2024. Amran said that the B50 trial represented a key step toward achieving national food sufficiency and energy independence. (Courtesy of Agriculture Ministry/-)
T
he Energy and Mineral Resources Ministry projects that construction of a US$1.16 billion ethanol and methanol processing facility in Bojonegoro, East Java, could be finished by the end of 2027.
Deputy Energy and Mineral Resources Minister Yuliot Tanjung said the factory, designated as a national strategic project (PSN), would help boost biodiesel production in the country.
Alcohol, such as methanol or ethanol, is used in chemical reactions to produce fatty acid methyl ester (FAME) that is mixed with diesel fuel.
“We hope that with efforts to accelerate [the factory construction], the methanol industry in Bojonegoro will be completed by the end of 2027,” Yuliot said in Jakarta on Friday.
Read also: RI can achieve 100% renewable energy within ‘years’, Prabowo tells APEC summit
He went on to say that the national methanol supply is limited, explaining that the nation is largely dependent on imports as it requires an annual methanol supply of 2.3 million tonnes while domestic production is estimated at just 300,000 tonnes.
Indonesia has been a net importer of oil and fuel for decades after the country suffered from a decline in its domestic production.
