Pertamina to invest us$ 480 million for bio-avtur production

Kuta, Bali (ANTARA News) - State-owned oil and gas company, Pertamina plans to invest approximately US$ 480 million to produce bio-aviation turbine fuel (avtur/jet fuel), as well as build a refinery.

"Next year, we will conduct a fit, front-end engineering design study," the Manager of Technology and Product Development, Directorate of New and Renewable Energy, Pertamina, Andianto Hidayat, revealed on Wednesday.

He said the company also intended to build a bio-avtur refinery by 2017.

Pertamina is targeting bio-aviation fuel production of up to 26 million liters per year and is expected to supply the needs of non-fossil fuels for aircrafts.

The fuel, made from palm oil, Hidayat added, is predicted to surpass the target for the national aviation industry, where bio-aviation fuel use is currently pegged at about 3 percent.

Indonesias airline industry does not use environmentally friendly fuels. However, Minister of Transport Ignatius Jonan said the national aviation industry was growing at an annual rate of 10 percent.

Hidayat said the bio-aviation fuel refinery will be built on-site near the airport, and would supply the raw material.

The construction and development of the bio-aviation fuel refinery is expected to support the governments efforts to reduce carbon emissions from the aviation industry by up to 26 percent by 2020.