InfoSAWIT, JAKARTA – Head of Research and Development, Ministry of Energy and Mineral Resources, Dadan Kusdiana said that there are two ways to increase the domestic absorption for biodiesel. The first is by optimizing the biodiesel advantage from crude palm oil in the electricity and industries; and the second is by urging to use green fuel, such as, green diesel, green gasoline, green avtur, and others.
But he admitted, the expansion of palm oil usage has challenges to get the solutions, such as, the biodiesel in palm oil – base (FAME) or pure palm oil (PPO) in the power plants would be about 1,23 million kiloliters (kl).
The facts showed that if biodiesel is used to the existing power plants, the machine should be modified and it could spend 10 – 15% of the capital expenditure (Capex). That is why the diesel power plants reaching about 4.969 would spend the investment up to Rp. 5 - 10 billion.
The green fuel development by implementing Hydrogenated Vegetable Oil (HVO) process in 2020 could be about 0,1 million kiloliters and would be increased to be 3,8 million kiloliters in 2030. “The selling price of HVO could be about Rp 16 thousand/liter. It means that the subsidy needs would be about Rp 36,3 billion in 2030,” Dadan said. (T2)
This article once published in InfoSAWIT, July 2019