Indonesia testing efficiency of cars that run on cooking oil at high altitudes in drive towards greener vehicles
· Six minivans filled with 40 per cent palm-based biodiesel will travel across Java island to test the effectiveness of the fuel
· If successful, move could divert more palm oil toward biofuel and reduce exports, which may drive up global prices and increase cooking oil costs
27/10/2022 (South China Morning Post) - Indonesia, the world’s largest palm oil producer, is testing to see if vehicles can run effectively on diesel blended with 40 per cent cooking oil, and if it works well at higher altitudes. A successful outcome would shift more local supply toward biofuel and curb exports.
Six Toyota Innova minivans filled with 40 per cent palm-based biodiesel are going to zoom across Java island in coming weeks. They set off from Dieng, an active volcanic area in central Java, on Wednesday to see if the tropical oil can adapt to higher altitudes. Palm normally tends to solidify at cooler temperatures.
Indonesia has been pushing to use a higher proportion of palm oil in biodiesel as a way to cut fossil-fuel imports, reduce emissions and absorb excess palm oil supply. The Southeast Asian nation currently requires vehicles to use a 30 per cent blend, known as the B30 mandate, and is trying to increase that to B40.
If successful, the move would divert more palm oil toward biofuel and reduce supply available for exports. This has the potential to drive up global prices and increase cooking oil costs. Earlier this year, palm oil futures soared to a record when Indonesia banned exports to curb domestic inflation, and then tumbled as stockpiles overflowed and forced it to change course.