Indonesia sees B30 biodiesel programme reducing fossil fuel use by 165,000 bpd
Successful Farming (28/11/2019) - JAKARTA, Nov 28 (Reuters) - Implementation of Indonesia's plan for biodiesel to contain 30% palm-based fuel is expected to reduce fossil diesel fuel consumption by 165,000 barrels per day (bpd), a senior energy ministry official said on Thursday.
Indonesia, the world's top palm oil producer, aims to start its "B30" programme in January, expanding it from the current mandatory use of 20% bio-content in biodiesel.
F.X. Sutijastoto, director general of renewable energy at the Energy and Mineral Resources Ministry, said the 9.6 million kilolitres (KL) of fatty acid methyl ester (FAME) expected to be used next year in the B30 programme is equal to 165,000 bpd of diesel fuel use.
Indonesia's President Joko Widodo pushed for the higher mix of the fuel made from palm oil in efforts to reduce energy imports and soak up more of the country's output of the vegetable oil.
"As per the directives from the president, we will continue to develop this, whether into biodiesel with 50% bio-content, or 100% bio-content or we can develop green diesel fuel," Sutijastoto said.
Dadan Kusdiana, head of research and development at the energy ministry, said the government will start preparing research for the fuel containing 50% bio component, known as B50, after officially launching the B30 programme in January.
President Widodo last week said processing more of the country's resources at home and create value add for products such as palm oil and nickel ores would resolve the country's current deficit account problem within three years.
Indonesia's B30 programme has sparked palm price rally in recent months due to concern that the top producer will have less palm oil to export. (Reporting by Bernadette Christina Munthe; Writing by Fransiska Nangoy; Editing by Toby Chopra)