Indonesia's Pertamina aims to start green refinery operations by end 2021

JAKARTA, March 6 (Reuters): Indonesia's state energy company PT Pertamina said on Saturday it plans to start production at its Cilacap green refinery by the end of this year to make oil products such as diesel and jet fuel, entirely out of palm oil.

Indonesia, the world's largest palm oil producer, has a mandatory biodiesel programme with 30% palm oil content known as B30, but the government is keen to expand the use of the vegetable oil for energy as it cuts down on fuel imports.

Ifki Sukarya, a senior Pertamina official, said "Green Diesel" uses Refined, Bleached and Deodorised Palm Oil (RBDPO), which is palm oil that has been refined to remove free fatty acids and purification to remove colour and odour.

The other product is the "Green Jet Fuel," which uses Refined, Bleached, and Deodorised Palm Kernel Oil (RBDPKO).

Pertamina will process 3,000 barrels of RBDPO per day to produce "D100" biodiesel, set to come onstream in December in the first stage. It will follow that with processing 6,000 barrels of crude palm oil per day to make biodiesel or jet fuel from December 2022.

Ifki said the production capacity for the green diesel and the jet fuel at its Cilacap refinery on Java island could be increased starting in 2023.

Trials for the biodiesel and jet fuel started in January 2021 and December 2020, respectively.

While biodiesel promises significantly lower carbon emissions, the land clearance taking place to grow palm oil has raised concerns among environmentalists about deforestation. - Reuters
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