JAKARTA – Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia said Indonesia will develop a methanol plant, which is necessary to support the production of biodiesel, with a total investment of US$1.2 billion or around Rp19.02 trillion in Bojonegoro, East Java province.
According to the minister, the plant will have a production capacity of 800,000 tons of methanol per year. “We design the plant to support the government’s program to accelerate the production of B50 (biodiesel 50 persent) in the next few years, so that we won’t rely on import of methanol needed for biodiesel production,” he said.
“It’s because we import 80% of the methanol for blending biodiesel. Hopefully, we can reduce our methanol import with the operation of the planned plant in Bojonegoro with a total investments of around US$1.2 billion,” Bahlil told the press on Thursday (28/11/2024).
Minister Bahlil said the methanol plant development is part of the ambitious target of President Prabowo Subianto in realizing the national energy self-sufficiency by accelerating the production of biodiesel and bioetanol, and increasing oil and gas production and lifting. “Besides methanol, we also import ethanol as feedstock for bioethanol production. By developing our ethanol plant at home, we can also accelerate production of bioethanol,” he said.
He said the government is also pushing for development of ethanol plant, which is expected to be fed with sugarcane or cassava. We need that for biodiesel blending. For such blending we usually use CPO ethanol or methanol and diesel fuel. So, when we start the B50 production, we can use diesel fuel that is locally produced. For the balance, then, we will no longer need to import,” said Bahlil.
The minister stated that the need of crude palm oil (CPO) for energy sector to produce the biodiesel will not reduce the CPO allocation for foods, especially cooking oil.
“Possibly, the last resort in securing CPO supply to implement the biodiesel mandatory program will be for us to reduce allocation of palm oil exports. We have to prioritize our national need,” he said, adding that the government could not just ignore the need of other countries for CPO supply.
Previously, Bahlil said that the government has targeted to implement the B50 mandatory program in 2026. “Currently, the B50 program is still on the process of technical trial. But the B40 mandatory program will be implemented on 01 January 2025,” he said. (*)
Source: sawitku.id / cnbcindonesia.com
