Geospatial Visualization for Second-Generation Renewable Diesel Feedstock from Palm Oil Value Chain

Abstract

The demand for biofuels has begun to shift from first-generation biofuels to second-generation biofuels. One of the biofuels already planned in the government’s roadmap is renewable diesel from the hydrotreatment of palm oil. By 2040, the share of renewable diesel is projected to reach 1.4 million kL per year, contributing to 9% of the biofuel blend program. As the world’s largest palm oil producer and consumer, Indonesia has the opportunity to achieve a circular economy in the palm oil value chain by utilizing its waste and byproducts for biofuel production. However, there is a lack of a top-down perspective to assess second-generation renewable diesel potential from the palm oil sector in Indonesia. This study is intended to fill such gap by providing practical and comprehensive tools to develop the roadmap for second-generation renewable diesel in Indonesia, comprising of a conversion diagram and geospatial visualization method. Based on the results of this study, there are around 1,200 points of source (palm oil mills, refineries, and others) for palm oil-based waste in Indonesia with an approximate total of 1.4 million kL per year renewable diesel production capacity potential. Applicable waste-based feedstock from upstream and midstream palm oil sectors are palm oil mill effluent (POME) oil, spent bleaching earth oil (SBEO), and palm fatty acid distillates (PFAD). These are concentrated in the regions of Sumatra, Kalimantan, and Java to a lesser extent.