Indonesia is considering using B35 biodiesel starting in January 2023
The energy ministry has expressed intent to implement a scheme to use biodiesel with a 35% blend of palm oil-based fuel, known as B35, starting from January 20, 2023, according to a senior official in the ministry.
The country produces the most palm oil in the world, and 30% of its biodiesel is derived from palm oil. A total allocation of palm oil-based fuel for 2023 is estimated to be around 13 million kilolitres in total, based on current estimates, according to him.
An allocation of 11.03 kilolitres of water has been allocated to Indonesia for 2022.
After announcing earlier this week that he was expecting that prices of crude oil would remain high in 2015, Malaysian President Joko Widodo ordered his cabinet to prepare a mechanism to implement B35.
In anticipation of rising world oil prices, the B35 policy has been put in place. On the one hand, it aims to reduce imports, but on the other hand, it also aims to increase the use of renewable energy,” said Dadan Kusdiana, a ministry official.
There are a number of reasons why Indonesia became one of the top oil importers in the region. However, officials say the import bills have significantly decreased since Indonesia started using palm oil in increasing quantities in biodiesel.
In Malaysia, palm oil prices have increased in response to the expected changes that will be implemented. However, some market participants are disappointed with the reduction of the blend from 40% to 35%.
Currently, the energy ministry is running a test on a biodiesel fuel produced from palm oil which contains 40% of the fuel.
Ten out of the 12 vehicles that were tested completed the road test without any significant problems, Dadan added. He added that the next step was to determine the specifications for B35 biodiesel after the B40 trials had been completed.
The B35 program will hopefully be implemented as soon as possible in January 2023 and we hope to see its benefits.”
The Ministry of Petroleum and Energy Development (MPED) in Indonesia is testing two formulations of B40. The first formulation is a mix of diesel mixed with 40% fatty acid methyl esters (FAME) while the second formulation is a mix of diesel with 30% FAME mixed with 10% green diesel made from refined, bleached, and deodorized palm oil (RBDPO).
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