Interra Resources announced it has entered into a joint venture with two Indonesian companies, PT Mitra Investindo (MITI) and PT Prima Aset Lestari (PAL) on October 9 to form a new joint venture company in Indonesia called PT Mitra Biomass Internasional.
MITI is listed Jakarta Stock Exchange and it operates a fleet of vessels catering to different sectors of the logistics sector. PAL is a private company whose shareholders are Akbar Rival and Edy Sumarso who own 60% and 40% respectively of PAL. The JV Company is a foreign investment limited liability company incorporated in Indonesia, which will build and operate a wood pellet plant in Sumatra.
Interra’s initial investment is for around 40% of the JV Company for US$282,000. The entire cost of the the joint-venture is estimated at US$4.8 million, and Interra’s share is estimated at US$1.92 million.
Wood pellets are biofuels made from residuals left from the wood industry, Interral says in a statement. "They are widely used as fuel in Europe, North America, South Korea and Japan. In recent years, its use has also been on the rise in China, Thailand and Indonesia as the world turns towards renewable, sustainable energy sources. Wood pellets are currently one of the most widely used forms of biofuel, and the outlook for this product is very promising," Interra says.
