2013 Exhibitions
Celanese Corporation, a global technology and specialty materials company, has recently signed a Memorandum of Understanding (MOU) with Pertamina, Indonesia’s energy company to commence the detailed planning phase for the development of synthetic fuel ethanol projects in the country, utilising Celanese’s proprietary TCX ethanol process technology.
Under the MoU terms, Celanese maintains a majority share and would license its leading TCX Technology to the joint venture under a separate technology licensing agreement
Pertamina’s collaboration with Celanese for the said project is part of its long-term strategy to develop new and domestic energy capabilities.
Both companies have already identified potential production locations, confirmed coal supply options and developed an ethanol distribution strategy.
The detailed financial terms of the joint venture partnership and licensing arrangement have not been finalised; however, the capital investment and financial returns for the venture are expected to be consistent with those previously announced by Celanese for fuel ethanol projects.
Celanese and Pertamina expect to complete this phase of the MoU by the end of 2013 and production of fuel grade ethanol has been set to start 30 months after final investment decisions by each company and receiving all necessary government approvals.
“Celanese is pleased to support the Indonesian government’s long-term objectives for the use of its abundant local resources, specifically lower BTU-content coal, to drive economic development. Working with Pertamina, we are excited to demonstrate how our TCX Technology will help Indonesia achieve its objectives,” said Mark Rohr, Chairman and CEO of Celanese .
Karen Agustiawan, President Director and CEO of Pertamina , said, “The development of ethanol business is in line with the Government of the Republic of Indonesia’s policy to implement Indonesian target in Energy Mix 2025. This initiative has triggered us, the National Energy Company of Indonesia, to develop clean, renewable energy and new energy for diversification, by increasing the contribution from gas and other non-fossil energy contribution, as well as liquefaction coal which is targeted to contribute about 2 percent by 2025. To meet this goal, we are pleased to partner with Celanese on the development and application of new forms of energy, such as synthetic fuel ethanol.”
(PRA)
