In the News CPC inks biodiesel deal with Indonesian firm * Publication Date：09/03/2009 * Source： Commercial Times The Taiwan-based CPC Corp.

In the News

CPC inks biodiesel deal with Indonesian firm

• Publication Date：09/03/2009
• Source： Commercial Times

The Taiwan-based CPC Corp. signed a memorandum of understanding Sept. 2 with Indonesia’s Induk Koperasi Unit Desa to produce biofuel, with a capital investment of NT$3.6 billion (US$109.4 million).

President of CPC Chu Shao-hua and Induk Kud Chairman Herman Yosef Loli Wutun signed the memorandum agreeing to plant 100,000 hectares of Jatropha Curcas in east Kalimantan over the next five years. The trees are expected to produce 350,000 metric tons of jatropha oil and 2 million tons of carbon credits, which will compensate for 20 percent of CPC’s carbon emissions.

CPC said since July 2007 the government has required that all diesel fuel for automobile use contain 1 percent biofuel. Taiwan consumes about 3.5 million metric tons of diesel annually, and thus 35,000 metric tons of biofuel are needed every year.

The new collaboration with Indonesia aims at diversifying CPC’s energy resources.

The two companies will each cover 40 to 50 percent of the capital for the project along with investment from other smaller shareholders. The jatropha oil is expected to enter the market by 2012 at the earliest.

The jatropha tree (commonly known as the physic nut) is a non-food plant with a lifespan of 50 years. It is strongly resistant to droughts, pests and diseases, and can be grown on marginal land. The tropical land that CPC acquired to grow the trees on is internationally certified as non-food cropland and non-forest area.

Jatropha is an important source of biofuel because its initially refined oil can be used to power generators, fishing vessels, and agricultural equipment, and hydrogenating the oil will transform it into environmentally friendly biodiesel. (TYH-THN)

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Taiwan oil firm signs deal to produce biofuels in Indonesia
	Posted : Wed, 02 Sep 2009 14:05:39 GMT Author : DPA Category : Energy (Environment) News Alerts by Email ( click here ) Energy Environment News | Home

Taipei - Taiwan's state-run Chinese Petroleum Corp (CPC) signed an agreement Wednesday to plant 100,000 hectares of crops for biofuels in Indonesia. The memorandum of understanding (MOU) was signed in Taipei by CPC President Chu Shao-hua and Herman Yosef Loli Wutun, chairman of Induk Kud (Inkud), the Indonesian national co-op for farmers and fishermen. Under the MOU, in the next five years, CPC is due to plant 100,000 hectares of Jatropha curcus in Eastern Kalimantan, and get 350,000 tons of jatropha oil plus 2 million tons of carbon credits, which is 20 per cent of CPC's annual carbon dioxide emissions. CPC agreed to grow Jatropha curcus in Indonesia for 50 years. Jatropha curcus is a drought-, pest- and disease-resistant plant that can grow almost everywhere. The plant's seeds contain up to 40 per cent jatropha oil, which can be made into biofuel. Copyright, respective author or news agency

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