Celanese Announces Advancement Of MOU With PERTAMINA To Develop Fuel Ethanol Projects In Indonesia
Celanese Corporation (NYSE:CE), a global technology and specialty
materials company, today announced it signed a Memorandum of
Understanding (MOU) with Pertamina, the state-owned energy company of
the Republic of...
Celanese Corporation (NYSE:CE), a global technology and specialty materials company, today announced it signed a Memorandum of Understanding (MOU) with Pertamina, the state-owned energy company of the Republic of Indonesia, and will begin the detailed project planning phase for the development of fuel ethanol projects in Indonesia. In line with its long-term strategy to develop new and domestic energy capabilities, Pertamina is working with Celanese to jointly develop synthetic fuel ethanol projects in Indonesia utilizing Celanese’s proprietary TCX® ethanol process technology. Celanese and Pertamina have successfully completed the objectives of the previously announced Joint Statement of Cooperation, which included identifying potential production locations, confirming coal supply options and developing an ethanol distribution strategy. The MOU outlines the parties’ intentions to establish a joint venture partnership under which Celanese would maintain a majority share and would license its leading TCX® Technology to the joint venture under a separate technology licensing agreement. The detailed financial terms of the joint venture partnership and licensing arrangement have not been finalized; 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. Under the detailed project planning phase of the MOU, Celanese and Pertamina will select the first production location, initiate project permitting, and negotiate coal supply and other industrial partner agreements. Celanese and Pertamina expect to complete this phase of the MOU by the end of 2013. Celanese and Pertamina expect the production of fuel grade ethanol to begin approximately 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 chief executive officer, Celanese Corporation.