PNOC subsidiary plans 3 new biodiesel plants

JAKARTA, Indonesia – The government is planning to put up at least three new biodiesel processing plants within the next three years, a ranking energy official said.

In a presentation during a conference on biofuels and feedstocks here, PNOC-Alternative Fuels Corp. (PNOC-AFC) president Peter Abaya said they are tapping various local and foreign partners for the company’s biodiesel project.

"Discussions with potential partners are underway," the PNOC official said.

Among the interested joint venture partners are: Samsung (Korea); Sumitomo (Japan); JGC (Japan); National Biofuels (United States); HDZ (Malaysia); Brunei National Petroleum Co. (Brunei); Chemrez Inc. (Philippines); Biogreen Energy Sdn Bhd; and Limketkai Mfg Co. (Philippines).

Abaya said Sumitomo is looking at putting up a biodiesel terminal facility in the PNOC-AFC Industrial Park in Bataan.

JGC, on the other hand, is planning to construct an ethanol processing plant.

National Biofuels, meanwhile, intends to put up two biofuel refineries inside the PNOC-AFC park and one in Mindanao.

Chemrez is talking with PNOC-AFC for a possible joint venture to put up a plant with the park.

Limketkai, which used to produce edible oil, is planning to diversify into jatropha processing.

Talks with Biogreen, Abaya said, are also ongoing for a possible partnership on jatropha development.

There are also some local oil players that have expressed keen interest in joining PNOC-AFC in the proposed project. These are Flying V, Unioil, Seaoil and Eastern.

Local refiners Pilipinas Shell and Petron/Saudi Aramco have likewise signified interest to join the project.

The PNOC-AFC chief said if talks with joint venture partners would be finalized this year, they expect the construction of the three jatropha refineries to be completed by 2009.

Abaya said a 250,000-metric ton processing plant is estimated to cost about P2 billion.

PNOC-AFC, formerly PNOC-Petrochemical Development Corp., has been mandated by President Arroyo to take the lead in the development of biofuels industry in the country.

Expressing confidence that the Philippines can produce competitive biofuel resources and products, Abaya said. PNOC-AFC wants to bring the Philippines in the forefront of biodiesel industry.