Bali: The Ministry of Energy and Mineral Resources announced the need for seven to nine new plants to process crude palm oil (CPO) into biodiesel to reach B50 biodiesel production. This was shared by the ministry’s bioenergy director, Edi Wibowo, at the Indonesia Palm Oil Conference (IPOC) 2024 in Bali on Thursday, reports Antara News Agency.
According to Wibowo, additional plants or increments of capacity in existing facilities are required to meet the annual 19.7 million kiloliters of biodiesel needed for B50, a blend containing 50% palm oil and 50% diesel. For now, Indonesian production is only 15.8 million kiloliters per year, with a large difference to be met.
He added that this hike in production will present an investment opportunity since conversion to B50 would need an addition of approximately $360 million in capital investment.
On the transition to B40 biodiesel, which is set to commence in January 2025, Wibowo mentioned there is a shortfall of 0.3 million kiloliters in production capacity; however, it can be handled by persuading 24 biofuel companies to increase their output level.
By 2026, the target set by the Indonesian government is B50. Speaking earlier in Jakarta on November 3, Energy and Mineral Resources Minister Bahlil Lahadalia shared that the ministry is also working on a plan to develop biodiesel up to B100 as part of the drive towards energy self-sufficiency.
Currently, Indonesia is using a B35 biodiesel admixture of 35% FAME from palm oil and 65% diesel, effective from 1 February 2023.
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