Cargill to Build New Palm Oil Refinery in Indonesia

Oleochem Analytics — Global food and biofuels corporation Cargill, based in Minnesota, is building a sustainable palm oil refinery in Lampung, Indonesia, which is expected to be completed in late 2022.

The company will invest $200 million in the Indonesian plant, but it has not confirmed its specific capacity yet.

Cargill wants to develop a sustainable palm supply chain and provide verified deforestation free products to customers, according to a statement released by the company in its website earlier this month.

“The new refinery will play a key role in connecting sustainable crude palm oil production in Indonesia to demands in North America and Europe through a fully integrated supply chain from plantation to customer”, the company said.

Concerns about sustainability of palm oil cultivation has prompted several countries – among them France, Austria, Germany, the Netherlands and even Sri Lanka – to ban the use of palm oil and palm oil-based biofuels in their markets.

In addition, EU’s 2018 new Renewable Energy Directive (RED II) plans to totally phase out palm oil-based biofuels by 2030.

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