Celanese, Pertamina to collaborate on fuel ethanol projects in Indonesia
US-based specialty materials company Celanese has agreed to develop fuel ethanol projects with Pertamina, the state-owned energy company of Indonesia, officials said late Thursday.
In line with a long-term strategy to develop new and renewable energy sources, Pertamina will collaborate exclusively with Celanese to jointly develop synthetic fuel ethanol projects in Indonesia utilizing Celanese’s proprietary TCX ethanol process technology.
“Celanese’s TCX technology can help Indonesia meet its growing demand for affordable, locally-sourced, high quality and safe liquid transportation fuel,” said Steven Sterin, chief financial officer and president of Celanese’s Advanced Fuel Technologies business.
“High-octane fuel ethanol produced using TCX technology would help improve air quality through the reduction of particulate matter as well as nitrogen oxide and sulfur oxide emissions,” Sterin added.
Indonesia’s demand for transportation fuels in 2012 is projected to reach approximately 25 million tons and increase 6%/year through at least 2020.
“A major priority for Pertamina is supporting the Government of Indonesia in securing and managing our energy resources to meet rising demand among both businesses and consumers so we can continue to drive our economic growth to benefit all sections of the society,” said Karen Agustiawan, CEO of PT Pertamina (Persero)
A 10% blend of high-octane fuel ethanol by 2020 would potentially require up to four world-scale TCX technology production units, Celanese said, which could reduce Pertamina’s gasoline import requirements by over 30 million bbl/year.
In addition, high-octane fuel ethanol, which improves tailpipe emissions, may also assist Pertamina in meeting Indonesia’s goals of improving the country’s gasoline and air quality standards, the company said.
Under the agreement, Celanese and Pertamina will work together to define potential supply arrangements, production locations and distribution strategies.
Following this work, along with final investment decisions by management teams, production could begin in approximately 30 months.
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