Prospects for the Development of Green Gasoline and Green Diesel from Crude Palm Oil in Indonesia

Abstract

The Government of Indonesia is trying to reduce crude oil and oil fuel imports in order to minimize the balance of trade deficit through increasing utilization of biofuel. One of the options is to increase palm oil production to be processed into biofuel which can be utilized domestically. Crude palm oil (CPO) production is expected to continue to increase and is prospective to be used as a feedstock for making green gasoline and green diesel. Green gasoline production through catalytic cracking process while producing green diesel through hydrotreating process. The development of green fuel (green gasoline and green diesel) is technically possible and prospective. Production of green gasoline and green diesel by 2020 will be able to reduce import of gasoline and diesel oil by 8.9% and 31.8% respectively. Green fuel is only effective in reducing the import value of gasoline and diesel in the period 2025-2040 because there are constraints on the availability of CPO. Production of green diesel and green gasoline can reduce fuel imports so that it indirectly increases energy security. The development of the green diesel and green gasoline industry requires a clear and gradual grand strategy from the government so that feedstock needs will not interfere with food needs.