{"id":8973,"date":"2022-07-07T17:09:55","date_gmt":"2022-07-07T10:09:55","guid":{"rendered":"https:\/\/tractionenergy.asia\/?p=8973"},"modified":"2022-07-13T17:21:30","modified_gmt":"2022-07-13T10:21:30","slug":"used-cooking-oil-as-feedstock-makes-biofuels-more-sustainable","status":"publish","type":"post","link":"https:\/\/tractionenergy.asia\/en\/used-cooking-oil-as-feedstock-makes-biofuels-more-sustainable\/","title":{"rendered":"Used cooking oil as feedstock makes biofuels more sustainable"},"content":{"rendered":"

By Fariz Panghegar. This op-ed was originally posted on The Jakarta Post<\/a>.<\/em><\/p>\n

Indonesia\u2019s ambitious biofuel program, which promotes the use of increasingly higher mixes <\/span>of crude palm oil (CPO) with conventional diesel<\/span> —<\/span> currently 30 percent (CPO\/diesel)<\/span> —<\/span> has <\/span>become one of the key contributors to Indonesia meeting its carbon<\/span>–<\/span>emissions<\/span>–<\/span>reduction <\/span>target, as well as reducing its reliance on expensive oil imports.<\/span><\/span><\/p>\n

<\/span>During a recent Group of 20 webinar, an official from Indone<\/span>sia\u2019s Energy and Mineral <\/span>Resources Ministry (ESDM) stated that \u201cbiofuels are vital for the development of a green <\/span>economy to achieve a just, equitable and people<\/span>–<\/span>centered energy transition\u201d. <\/span><\/span><\/p>\n

According to ESDM Indonesia produced 16.3 million kiloliters (kl<\/span>) of B30<\/span>–<\/span>biodiesel in 2021, <\/span>a significant increase from 13.3 million kl in 2020, giving the government the confidence to <\/span>scale up the biofuel program and funding. The development of a pilot green<\/span>–<\/span>refinery program <\/span>is underway in Cilacap, Central Java, with<\/span> the first phase of the project aiming to produce <\/span>Hydrotreated Vegetable Oil (HVO) or Green Diesel, a second<\/span>–<\/span>generation biodiesel product<\/span> from Refined, Bleached and Deodorized Palm Oil (RBDPO).<\/span><\/span>
<\/span><\/p>\n

While these positive claims and developments paint a rosy pict<\/span>ure, Indonesia still needs to <\/span>overcome several challenges and close some gaps to improve the positive impact of its <\/span><\/span><\/span>biofuel program, including the potential for unsustainably produced CPO feedstock to emit <\/span>more CO2 compared to fossil diesel.<\/span><\/span><\/p>\n

<\/span>As Indonesia\u2019<\/span>s biofuel program is still heavily dependent on CPO as the sole feedstock, this<\/span> has exposed the program to external pressures such as fluctuating prices for CPO and other<\/span> energy commodities, contributing to ordinary consumers having to pay much higher pric<\/span>es <\/span>for cooking oil. As a result, in our efforts to reduce the cost of fossil<\/span>–<\/span>fuel imports, we risk<\/span> bearing higher costs caused by surging CPO and oil prices.<\/span><\/span><\/p>\n

<\/span>Another major concern is that should Indonesia continue its ambitious biofuel program, while <\/span>stil<\/span>l lacking any robust sustainability standards for biofuel, and continue to rely on CPO as a<\/span> single feedstock, there is a high risk of increased deforestation to source the CPO needed to<\/span> supply the biodiesel program. The large expansion of palm oil plantati<\/span>ons, from 8.6 million<\/span> hectares in 2006 to 15.4 million hectares in 2019, which coincided with the launch and early<\/span> development of Indonesia\u2019s biofuel program, highlights the risks of relying on a single<\/span> feedstock for biodiesel.<\/span><\/span><\/p>\n

<\/span>The University of Indonesia<\/span>\u2019s Institute for Economic and Community Research (LPEM UI) <\/span>2020 analysis also concluded that the B30 program could face a CPO deficit, which could in t<\/span>urn trigger a further 5.2 million hectares of land clearing to grow the palm oil needed to meet <\/span>the deman<\/span>d for biodiesel feedstock.<\/span><\/span><\/p>\n

<\/span>The risk of land conversion and deforestation to source CPO is likely to increase further if <\/span>plans to increase the biofuel mix to B40 and to supply aviation fuel go ahead, especially if<\/span> CPO is still the sole feedstock. The incre<\/span>ased emissions from land clearing and deforestation <\/span>to grow more CPO for biofuel directly contradicts the government claim that the biofuel<\/span> program contributes to Indonesia\u2019s efforts to reduce greenhouse emissions and meet its<\/span> international climate commitm<\/span>ents.<\/span><\/span><\/p>\n

<\/span>If the primary purpose of the biofuels program was to contribute to Indonesia\u2019s climate <\/span>commitments and accelerate the transition to clean energy, then it would have been logical to<\/span> first develop robust biofuel<\/span>–<\/span>sustainability indicators. These indica<\/span>tors would provide <\/span>safeguards against feedstock production for biofuel producing higher<\/span>–<\/span>carbon emissions from <\/span>deforestation and other land clearance<\/span> —<\/span> especially high<\/span>–<\/span>carbon peatland.<\/span><\/span>
<\/span><\/p>\n

It is crucial to diversify the feedstock supply for biofuel. Indonesia<\/span> has a ready and stable<\/span> supply of low carbon<\/span>–<\/span>alternative feedstock to CPO, used cooking oil (UCO)<\/span> —<\/span> waste oil<\/span> generated from consuming cooking oil, the majority of which is palm<\/span> cooking oil. In 2019 <\/span>Indonesia consumed 16.2 million kl of cooking oil.<\/span><\/span><\/p>\n

<\/span>Based on research by Traction Energy Asia, a minimum of 1.2 million kl of UCO could <\/span>potentially be collected annually from Indonesia’s household and micro<\/span>–<\/span>business sectors. <\/span>Based on the average yield of UCO conversion to biodiesel, 1.1 million kl of biodie<\/span>sel,<\/span> enough to supply 10<\/span>–<\/span>12 percent of biodiesel production quota in 2020, can be sourced from <\/span>1.2 million kl of UCO. Even greater volumes of UCO could be collected from the hotel, <\/span>restaurant and cafe sectors, making UCO even more viable as a biodiesel fee<\/span>dstock.<\/span><\/span>
<\/span><\/p>\n

A recent study by Traction Energy Asia also confirmed that increasing the mix of UCO in <\/span>biofuel reduced the CO2 emissions considerably. A mix of 30 percent UCO\/70 percent diesel<\/span> could contribute up to 24 percent of the total energy<\/span>–<\/span>sector emission<\/span>–reduction target.<\/span><\/span><\/p>\n

<\/span>Developing a comprehensive UCO collection system from households, micro<\/span>–<\/span>businesses and <\/span>the food sector would also encourage the public to support the transition to clean energy and <\/span>fulfilment of Indonesia\u2019s emissions<\/span>–<\/span>reduction commitmen<\/span>ts, in line with the government\u2019s<\/span> ambition for people<\/span>–<\/span>centered biofuel development. Traction Energy Asia’s research also shows that using UCO in biofuel can potentially save up to Rp 4 trillion (US$278.64 million) from the CPO Fund, which is used to close the gap between the price of fossil diesel and biodiesel.<\/span><\/span><\/span><\/p>\n

<\/span><\/span>Quick steps are needed from the government to provide the support needed to manage UCO as a strategic energy commodity to improve the sustainability of the biofuel program, and to contribute to Indonesia\u2019s development of a circular economy and low-carbon growth. As the government does not currently regulate UCO, classified as liquid waste, as a biofuel feedstock, policy changes are needed. This requires strong inter-ministerial and agency coordination to provide the policy and regulatory framework to enable UCO to be used as a complementary biofuel feedstock to further reduce emissions from land-use change and transportation, and to accelerate Indonesia\u2019s transition to clean energy and low-carbon growth. <\/span>
\n<\/span><\/span><\/p>\n

Fariz Panghegar is the Research Manager at Traction Energy Asia.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By Fariz Panghegar. This op-ed was originally posted on The Jakarta Post. 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