The Palm Scribe

Palm oil-based fuel needs support

Bisnis Indonesia, 9 October 2018

The government is expected to accelerate palm oil-based fuel production, which needs Rp815 trillion-Rp840 trillion investment until 2025. Indonesian Vegetable Oil Association (GIMNI) Executive Director Sahat M. Sinaga said on Monday (October 8) that with the current technology, the downstream sector could produce 5.24-5.96 barrels of fuel from a metric ton of crude palm oil. The palm oil-based fuel production will begin trial at the end of Q4 2018, with jet fuel production to follow in early 2019.

Palm oil-based fuel production can create 26.9 million metric tons additional demand for CPO, assuming usage of palm oil-based liquid fuel reaches 27%, Sahat said. The government could save up to $157.2 billion by 2030 by boosting palm oil-based fuel utilization, he said.

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