MOSCOW (MRC) -- Indonesia will need to increase the bio-content of its palm oil-based biodiesel to 40% by 2024 or risk missing its renewable energy targets, reported Reuters with reference to a senior official's statement on Wednesday.
Indonesia has a mandatory biodiesel program with 30% palm oil content known as B30. Longstanding plans to increase the palm content to 40% by 2021 were delayed due to cheaper fuel costs and record high palm prices.
"The use of (only) B30 will not achieve the RUEN target for 2025," Dadan Kusdiana, the director general of the country's energy ministry, told a virtual conference.
He was referring to Indonesia's goal to increase renewable energy use to 23% of its total energy consumption by 2025, which required biodiesel consumption of 13.9 kiloliters that year.
"The ministry will prepare B40 blending mandatory regulation to ensure investment certainty," Dadan said, adding that more studies and road tests were required.
Indonesia's energy ministry earlier on Wednesday said it will increase its 2021 biodiesel allocation to meet higher demand for fuel. Next year's biodiesel consumption meanwhile, is set to jump to over 10 MM kiloliters.
While fuel prices bottomed out during the thick of the global pandemic, petrol and diesel prices at the pump in Asia and Europe reached near-record peaks this year, making palm a more attractive feedstock for biofuels.
As MRC wrote before, deployment of carbon capture storage (CCS) in Indonesia by American energy giant ExxonMobil Corp could cost about USD500 mln. In November 2021, Pertamina and ExxonMobil signed a MoU during the COP26 summit to look at ways of using CCS in Southeast Asia's largest country. CCS facilities are likely to be implemented in two Indonesia oil and gas fields, namely the Gundih field in Cepu and the Sukowati field in Bojonegoro, in Central and East Java respectively.
MRC