Palm Oil Biodiesel
Palm oil biodiesel is a general term for liquid fuel produced from palm oil, used as a substitute for, or blend with, diesel (fossil diesel). Palm oil biodiesel is one type of biofuel an umbrella term covering all biomass-based fuels, including also bioethanol and biogas. Biofuel is an umbrella term for fuels derived from biomass, while biodiesel is one type of biofuel which, technically, is a fatty acid ester (FAME) made from vegetable oil (in this case palm oil) through the transesterification process.
Palm Oil Biodiesel vs FAME: What’s the Difference?
This is where things often get confusing: technically, the most commonly produced and traded palm oil biodiesel today IS FAME. The two terms are often used interchangeably in the industry, because FAME is the most dominant type of biodiesel and the most widely produced commercially in the world.
However, “biodiesel” is actually a broader term than FAME, because it can also cover other types such as HVO (Hydrotreated Vegetable Oil) biodiesel processed through hydrogenation, not transesterification. So, the relationship between the two can be described as follows:
- Palm oil biodiesel = category of palm oil-based diesel substitute fuel (general term)
- FAME = the most common type/method of palm oil biodiesel production (through transesterification)
- HVO/Renewable Diesel (D100) = another type of palm oil biodiesel, processed through hydrogenation, not FAME
Why Does the Difference Matter?
Although both are called “palm oil biodiesel”, FAME and HVO have very different chemical characteristics. FAME still contains oxygen in its molecular structure (it remains in ester form), whereas HVO has had its oxygen removed through the hydrogenation process, making it a pure hydrocarbon that more closely resembles fossil diesel. This structural difference affects storage properties, stability, and engine performance so it is important for readers not to simply equate “palm oil biodiesel” with “FAME”, even though in Indonesia the two almost always refer to the same thing because the national biodiesel program (B30, B40, B50) is based on palm FAME.
Relevance to the Indonesian Palm Oil Industry
In Indonesia, when people say “palm oil biodiesel”, what they almost always mean is CPO-based FAME because that is the basis of the B30 to B50 mandate program. Understanding that “palm oil biodiesel” is an umbrella term, while FAME is its specific form, helps avoid confusion when other technologies such as HVO/D100 begin to be discussed more in the future.
References
Universitas Islam Indonesia, “The Difference Between Biofuel and Biodiesel”, https://www.uii.ac.id/perbedaan-biofuel-dan-biodiesel/
USPTO Patent Application, “System and method for producing hydrothermal renewable diesel and saturated fatty acids”, https://image-ppubs.uspto.gov/dirsearch-public/print/downloadPdf/11414606
Baker Institute, “What to Know About Renewable Diesel and Biodiesel”, https://www.bakerinstitute.org/research/what-know-about-renewable-diesel-and-biodiesel