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Termination of Pertamina’s partnership with Italy’s Eny does not affect green project
Pertamina is to use Honeywell UOP technology as initially planned for the processing of palm oil into biodiesel in a green refinery to be developed in Plaju, South Sumatra
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Buoyed by the success of the B20 program, the government decided to increase CPO content in biodiesel to 30 percent. Called B30, this biofuel is mandatory beginning this year. (JP/Budi Sutrisno)
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tate-owned oil and gas company Pertamina is to continue with its plan to develop a green refinery to process palm oil into biodiesel despite the termination of its partnership with Italian oil, gas and power company Eni SpA, the company’s top executive has said.
Pertamina’s president director Nicke Widyawati said the termination of the partnership with the Italian company would not affect the state oil and gas company’s plan to process palm oil into diesel in its oil refinery in Plaju, near Palembang, South Sumatra.
Speaking during a hearing with members of Commission VII of the House of Representatives in Jakarta on Wednesday, Nicke said that Pertamina would use Honeywell UOP technology as initially planned.
Nicke told the House members that Pertamina had decided to terminate its partnership with the Italian company because there was doubt on the part of the Italian company over whether it could continue the project because it would be against the European Union’s policy to phase out the use of palm oil for transportation fuel.
She said Nicke Eni required internationally recognized certification for palm oil to comply with the EU’s policy even though the processing facilities for the production of the biodiesel would be located in Indonesia.
Pertamina and Eni signed a memorandum of understanding (MoU) in September 2018 to a build a refinery to process palm oil into biodiesel.
Pertamina is to modify existing oil processing facilities in the company’s refinery in Plaju so that they can be used to produce biodiesel from palm oil. According to her, modifying existing facilities could be 40 percent cheaper than building new ones.
