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Indonesia to boost domestic consumption of ‘green fuel’

JAKARTA (RambuEnergy.com) – The Indonesian Ministry for Energy and Mineral Resources (MERM) said it is determined to boost the use of greener fuel from crude palm oil in 2019 as an effort to reduce the consumption of fossil fuel, which is mostly imported.

The drive is part of the government’s efforts to achieve the target of 23% of renewable energy in the country’s energy mixed by 2025.

This is done by implementing the B-20 program, in which 20% of each litre of fuel is mixed with a fatty acid methyl ether (FAME). The B-20 program has been implemented since September last year.

The government targets to use 13 million kiloliters of CPO per annum, or 235,247 barrels per day in 2025. Last year, Indonesia produced 6 million kl of biodiesel or 108,576 barrels per day, higher than the target of 5.7 mln kl.

The program has been supported by the state-owned energy company Pertamina, which is currently developing biorefinery to produce biodiesel in cooperation with Italy’s ENI.

On Wednesday, Pertamina and ENI signed three MoUs, two of them are related with the development of Green Refinery, namely the Head of Joint Venture Agreement to develop Green Refinery and Term SHeet CPO processing in Italy.

This was a follow-up of a MoU signed late last year by the two companies.

The other MoU is related with the circular economy, low carbon products and renewable energy development. The deals were witnessed by the Indonesian Minister for Energy and Mineral Resources Ignasius Jonan.

Indonesia produces around 46 million tons per annum. The development of green refinery will give certainty for CPO producers to sell their products to the domestic market.

The energy ministry is currently drafting a formula for CPO price. (*)

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