Indonesia's Pertamina, Eni sign agreement for green fuel refinery
JAKARTA, (Reuters) - Indonesian state energy company PT Pertamina said it has signed agreements with Italian oil company Eni SpA to develop a so-called green refinery in Indonesia and to process a palm-based fuel mixture in Italy.
Pertamina said in a statement, it has signed a head joint venture agreement for the planned refinery in Indonesia that would produce fuel completely derived from crude palm oil (CPO) and a term sheet for CPO processing in Italy.
Pertamina also signed an agreement to allow it to process CPO at Eni’s refinery in Italy to produce hydrotreated vegetable oil (HVO), which can be used as a mixture in diesel fuel.
The two companies are also in talks to potentially produce HVO in Indonesia.
The two companies had previously agreed to conduct studies of potentially converting three of Pertamina’s refineries into green refineries to produce palm-based diesel as Indonesia boost efforts to soak up excess palm supply in the country. (Reporting by Wilda Asmarini; writing by Fransiska Nangoy; editing by Christian Schmollinger)
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