Palm Oil Industry Provides Solutions To Global Energy Crisis

JAKARTA – The palm oil industry can provide solutions to the current energy crisis in the world. The increase of fossil fuel prices at the global market, especially since early 2021, has pushed up the production and distribution cost of global products and worsened the impact of economic recession.

The Palm Oil Agribusiness Strategic Policy Institute (PASPI) said in a report recently that under such condition, the world needs alternative sources of energy that can reduce the reliance on the fossil fuels at the local, national and global levels.

“The palm oil industry contributes to the provision of renewable energy for the international communities. Three  generations of renewable energy from palm oil are now available for the global communities,” PASPI reported.

The first generation of the renewable energy is the processing of palm oil to produce biodiesel/FAME (Fatty Acid Methyl Ester), green diesel, green gasoline, and green avtur.

Its second generation is the use of oil palm biomass to produce bioethanol, biopellet, charcoal briquettes, biocoal, biogas, and bioelectricity.

Its third generation is the use of its solid and liquid wastes to produce various kinds of bioenergy, which include biogas from palm oil mill effluent (POME), biodiesel algae (from liquid waste of CPO mill algae pond), and the use of spent bleaching earth (SBE) from refinery.

PASPI said that globally the palm-based  renewable energy, such as biodiesel (from FAME) and bio-coal, has been widely used in various countries.

Other products of first generation, which include green fuel (green diesel, green gasoline, and green avtur), are being developed in Indonesia. The products of second generation and third generation have been used locally.

In addition to that, PASPI also reported that the palm oil has an important role at the level of global biodiesel industry. The volume of palm oil use in global biodiesel industry increased from 3.9 million tons in 2011 to 15.2 million tons in 2021. (*)