Pupuk Indonesia to Construct Two Methanol Plants for B50 Support
Pupuk Indonesia is set to build two methanol plants in Lhokseumawe and Bontang to bolster the B50 biodiesel initiative. These facilities aim to reduce methanol imports, which could otherwise rise to 5.2 million tons without local production.
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Pupuk Indonesia will establish methanol facilities in Lhokseumawe and Bontang, supporting Indonesia's B50 biodiesel program. The plants will convert crude palm oil into biofuel, addressing the current import reliance of about 1.5 million tons.
The Ministry of Agriculture mandates this initiative, with Danantara's approval. Feasibility studies are complete, and a memorandum of understanding has been signed for the Lhokseumawe site with Mubadala.
The Bontang facility is in progress. Both sites were selected for their gas resources, ensuring production viability. Construction is anticipated to last around 40 months, with capital expenditure details nearing finalization.
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