Pupuk Indonesia builds methanol plants for B50 biodiesel expansion
In Indonesia, Indonesia Business Port reported that state-owned fertilizer producer Pupuk Indonesia is moving to build two methanol production facilities to support Indonesia’s B50 biodiesel expansion.
The facilities are designed to support the government’s B50 biodiesel initiative, where methanol is a critical input in processing crude palm oil (CPO) into biodiesel.
The report noted that Indonesia currently imports around 1.5 million tons of methanol annually. Without additional domestic production capacity, demand could rise sharply to an estimated 2.5 million tons, highlighting a widening supply gap.
The planned plants are expected to significantly curb import needs while ensuring a stable supply of methanol for the country’s expanding biofuel sector.
The project has been mandated by the government through the Ministry of Agriculture and has secured approval from sovereign wealth fund Danantara.
Feasibility studies for both sites have been completed. For the Lhokseumawe plant in Aceh, Pupuk Indonesia has signed a memorandum of understanding with Abu Dhabi-based Mubadala, signaling potential foreign investment and technical collaboration, according to the report.
Preparatory work for the Bontang facility in East Kalimantan is also progressing, the report added.
Category: Fuels
