Pertamina ends its partnership with Eni to produce HVO from palm oil


Type of post: NEWS IN BRIEF.

PT Pertamina (Indonesian state-owned company engaged in the energy sector) has ended its partnership with Eni to transform its Plaju conventional refinery into an HVO biorefinery. The company is to continue with its plan to process palm oil into HVO despite the termination of the cooperation.
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Figure 1. Pertamina ends partnership with Eni to process palm oil into HVO

According to Reuters, Pertamina’s chief executive told a parliamentary committee that Eni required internationally recognised certification for palm oil, in line with European Union moves to curb the use of palm oil as a transport fuel, even though the oil would have been processed in facilities located in Indonesia.

A year ago, Eni and Pertamina signed a Memorandum of Understanding to cooperate in the areas of circular economy and renewable energies. One of the terms of the agreement included the establishment of a joint venture dedicated to the construction of a biorefinery within an existing complex in Indonesia. Now, Pertamina has decided to terminate this cooperation and replace it with a new partnership with UOP. Technical or financial details about the dissolution of the agreement with Eni and the new accord with UOP were not disclosed.

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