Government Reveals 5 Biofuel Strategies

Jakarta — The Indonesian government has prepared five strategies to develop the biofuel that is expected to increase the local absorption of crude palm oil (CPO) and strengthen the national economy and energy security.

The ministry of energy and mineral resources’ (MEMR) New and Renewable Energy Sources and Energy Conservation (EBTKE) Director General  Dadan Kusdiana said last week that the first strategy is to continue the mandatory program of B30 as has been targeted by the government. “The government will continue the B30 program with continual monitoring and evaluation,” he told participants of the Indonesian Palm Oil Conference (IPOC) 2020 New Normal which was virtually organized last Wednesday, 2 December 2020.

He pointed out that the government will solve problems arising from the implementation of the B30 program. The government will also improve the supporting infrastructure and keep ensuring the continuation of incentives for the biofuel production.

According to him, the second strategy is the development program of biofuel 40 percent and 50 percent (B40 and B50). Currently, the government is conducting an economic assessment, preparations of raw material and supporting infrastructure for the production of the B40 and B50. “We’ll also conduct a road test of the B40 and B50 use, and the test of using them in generating power through diesel fuel power plants,” he said.

Dadan said that the third strategy is the green fuel program to increase the production of green fuel. Concerning this program, the government will conduct an assessment of prevailing regulations, efficient and affordable technology, raw material,  incentives, supporting infrastructure and the development of supporting industries.

“The government and PT Pertamina are developing a standalone project of green fuel to produce green fuel products, such as green diesel, green gasoline and green avtur,” said Dadan.

The fourth strategy is the development of palm oil hydrogenation (CPO). Under a cooperation with PT Pertamina, PT Pupuk Indonesia, Bandung Institute of Technology (ITB), the oil palm plantations fund management board (BPDP-KS) and other stakeholders, the government will develop a new refinery of green diesel. “We hope we will develop a pilot project and then conduct a test in December 2021,” he added.

He said that the fifth plan is the utilization of post-mining areas to grow a number of selected commodities to support the national production of biofuel. This will be realized under a cooperation of the MEMR’s mineral and coal directorate general and the agriculture ministry. “All stakeholders are required to be committed to implementing the biofuel program according to the roadmap that has been designed by the government,” he said.

Based on the biofuel roadmap, the government has targeted that in 2035 the biofuel production will reach around 17.8 million kiloliters, consisting of biodiesel, co-processing green diesel, standalone green diesel, co-processing green gasoline, and standalone green gasoline. With the increase of biofuel production, the local absorption of crude palm oil (CPO) as raw material to feed the biofuel industries will also increase. (*)

Source: KONTAN.CO.ID | Featured image via greentechmedia.com