6th Oleochemicals Outlook

05-06 Sep, 2018 - Bali

Pullman Bali Legian Beach

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Indonesia to develop new 100% palm oil-based "green diesel"

Posted on : 03 Aug, 2018

 

Indonesia already uses a 20 percent biodiesel component blended with petroleum based diesel for land transportation, with the aim to raise the bio content to 30 percent in 2020.

 

Now the country is encouraging the development of a new 100 percent palm oil-based "green diesel" that can be used to replace petroleum-based diesel used in transportation.

 

A pilot project to produce the green diesel is underway at a biorefinery (owned by Elevance Renewable Sciences and Wilmar). The government has given them a corporate tax discount to develop full-scale output.

 

The new green diesel is made of hydrotreated vegetable oil and addresses the problems associated with the current bio portion of biodiesel (which is made with fatty acid methyl esters (FAME) from palm oil. Higher blends of FAME require special handling and equipment as the fuel has a solvent effect that can corrode engine seals and gasket materials, and it can solidify at cold temperatures.

 

The new green diesel is made completely from palm oil and has "the same specifications as petrol" and is compliant with the Euro IV emissions standard. Moreover, automakers do not have to worry about making modifications to engines and machinery to use the green diesel. The specifications of the green diesel are same as that of the B20 biodiesel.

 

With EU's plans to phase out the use of palm oil in transport fuels from 2030 owing to deforestation concerns, Indonesia has been looking at increasing domestic consumption of palm oil and the development of green diesel is to meet this target.

 

Although the new green diesel is said to be generating 90 percent fewer emissions than conventional fossil fuels, there are other studies that shows that among vegetable oils, palm and soybean oils generates the highest indirect greenhouse gas emissions because of deforestation and the drainage of peatlands associated with their cultivation.

 

This year, Indonesia is expected to consume about 3.3 million kilolitres of FAME, according to the Indonesia Estate Crop Fund while the Indonesia Biofuel Producers Association expects unblended biodiesel exports to reach 800,000 kilolitres this year.

 

Learn more about Indonesia Biodiesel Industry Development & Challenges from Mr. Paulus Tjakrawan, Vice Chairman of Indonesian Association of Biofuel Producers (APROBI) at CMT's 6th Oleochemicals Outlook on 5-6 September 2018 in Bali.

 

For more information, contact Ms. Grace at grace@cmtsp.com.sg or call +65 6346 9147.

 

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