Arrow resources to construct 96 Mgy ethanol plant in South East Sulawesi, Indonesia

Arrow Resources Development has announced that it will expand corn production and construct a 96 Mgy ethanol plant at the Bay of Lapuko in Konawe, South East Sulawesi. The plant will ultimately be expanded to 384 Mgy in production capacity. The corn plantation will include an area of 350,000 acres in Konawe that will be developed in two phases. Corn will be used not only for ethanol production but to reduce or eliminate Indonesia’s 2 million tonne annual importation bill

Last week, Greenpeace released its “Cooking the Climate” report which concluded that forest clearance in Indonesia for palm plantations has made the country the third largest producer of greenhouse gas emissions, behind the United States and China.

The study found that Indonesia is losing 2 percent of its tropical forest each year to deforestation, and that the resultant emissions more than offset the gain from switching from fossil fuels to biofuels. Indonesia has six million hectares of palm under cultivation and plans to expand this to 10 million hectares by 2015.

Indonesia has announced plans to reserve 13.5 million acres for biofuels by 2010, of which 3.7 million acres will be palm oil plantations.

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