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Largest Palm Oil Exporter Indonesia Plans to Make Green Diesel by 2022

Indonesia intends to start producing green diesel from palm oil in 2022, with production estimated at 3.7 million kiloliters, a senior delegate in the Energy and Mineral Resources Ministry stated.

Indonesia, the world’s most prominent palm oil producer, wants to produce green diesel, second-generation biodiesel. It currently makes use of biodiesel made from fatty acid methyl ester FAME from palm oil, which is blended with fossil fuel.

Green diesel will be made by refining fossil crude oil and palm derivatives together in a single process or refining palm oil in devoted refineries.

Director general of Indonesian renewable energy FX Sutijastoto, instructed a parliamentary hearing his estimate of 2022 production was based on a marketing strategy by Indonesia’s state power firm PT Pertamina, although additional studies were required.

Pertamina is presently planning to develop refineries that might produce diesel from palm oil.

By 2024, Indonesia ought to be able to ramp up production to 6.1 million kiloliters, according to ministry records presented to parliament.

Sutijastoto said there seven corporations were interested in constructing refineries to produce green diesel, such as Wilmar International, a Singapore-based agribusiness agency.

From January, the nation is set to usher in the mandatory use of B30 gas, biodiesel with 30% FAME mix. It could be expanded from the present 20% bio-content.

The B30 program has sparked palm price rally in recent months as a result of concerns that Indonesia could have less palm oil to export.

Indonesia is predicted to consume 10.1 million kiloliters of FAME in 2022, ministry data showed Tuesday.

President Joko Widodo sees the biodiesel plan as a way of offsetting a present account deficit caused by energy imports, while additionally supporting demand for palm oil, one of Indonesia’s major commodity exports.


Peter Leonhard

The group employed Peter Leonhard last year as a column lead. Previously he was leading the Natural Gas column, later took the wheel of Power and Energy column. Peter alongside an associate, looks after the functioning of the column. Right from sourcing information to writing news, they both do it all. Peter is also an environmentalist working on the climate crisis.

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