SMART to Build Biofuel Factory in Belgium
Wednesday, 28 February, 2007 | 17:00 WIB

TEMPO Interactive, Jakarta: PT Sinar Mas Agro Resources & Technology Tbk (SMART) is exploring the possibility of building a biofuel factory in Belgium.

According to a Tempo source, this company that Eka Tjipta Wijaya owns is seriously aiming at developing the alternative energy business.

The source went on to say that Smart is targeting at getting involved in carbon trading between developed and developing countries.

“This is the main reason,” said the anonymous source.

G. Sulistyanto, a Vice President Commissioner of SMAR, has confirmed the company's plan to build a biofuel factory in Belgium.

According to him, for the time being, a special team that the company set up is still in Belgium to explore the project.

“They (the exploring team members) will be back by March 9,” he told Tempo.

Sulistyanto refused to reveal any details as regards the amount of funds that the company has prepared and when the project will begin.

“This is all still being examined, so I cannot talk about it now,” he said.

After focusing only on oil palm plantation and processing, SMART is to start looking at bioenergy.

In January, the company invited Hong Kong Energy Ltd. and China National Offshore Oil Corporation to develop a biofuel project valued at US$5.5 billion.

The project will produce biodiesel with crude palm oil as its raw material as well as bioetanol with sugarcane and cassava as its raw materials.

This strategic step is aimed at reducing the dependency on fossil fuel the reserves of which are decreasing.

It is planned that these projects will be implemented in Papua and Kalimantan.

WAHYUDIN FAHMI