Celanese & Pertamina Initial MOU To Develop Fuel Ethanol Projects

:: 13 Mar  2013 ::

Jakarta - Celanese Corp. and Indonesia's Pertamina have signed a memorandum of understanding (MOU), advancing an earlier agreement to develop fuel ethanol projects in Indonesia.

The two companies will now begin the detailed project planning phase for the joint development of synthetic fuel ethanol projects based on Celanese's TCX ethanol process technology.

Celanese and Pertamina have completed the objectives of the previously announced joint statement of cooperation, which included identifying potential production locations, confirming coal supply options and developing a distribution strategy for ethanol.

The MOU outlines the parties' intentions to establish a joint venture under which Celanese will hold a majority interest and would license its technology to the venture under a separate technology licensing agreement.
 
Celanese noted that detailed financial terms of the partnership and licensing agreement have not been finalized, but said the capital investment and financial returns for the venture are expected to be consistent with those previously announced for its fuel ethanol projects.

Celanese and Pertamina will now proceed to select the first production site, initial project permitting and negotiate coal supply and other industrial partner agreements.  This phase is expected to be completed by the end of 2013, with ethanol production anticipated approximately 30 months after the final investment decision by each company and receipt of all necessary approvals.

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