Biodiesel Program Research Articles

Comparative Analysis of Leadership and Economic Impact of the Palm Oil Industry in Indonesia

Palm oil is one of the biggest industries that contributed to Indonesia’s economy. In this context, this article aims to investigate a comparison of the government policies in Indonesia’s palm oil under the Jokowi leadership and the previous presidents and how this industry contributed to national economic growth. We reveal that every president has different programs to develop the palm oil industry. Soeharto Perusahaan Inti Rakyat (PIR) or Nucleus Estate and Smallholders (NES) program has greatly affected the extent of Indonesia’s large plantations today. Meanwhile, during Megawati’s presidency, there were not many changes in terms of policies or regulations. On the other side, under Susilo Bambang Yudhoyono’s presidency, Indonesia’s palm oil industry experienced new innovations in terms of palm oil policy. The biodiesel program that was introduced in 2006 made Indonesia’s palm oil industry move to the next stage. This policy aims to reduce Indonesia's dependence on fossil fuels. Furthermore, this program became the forerunner of the biodiesel program which is currently being accelerated by President Jokowi. We argue that Jokowi’s programs such as the Biodiesel Mandatory Program (B30, etc.) through Pertamina, Peremajaan Sawit Rakyat, Moratorium on land clearing permits, and cooperation through Council of Palm Oil Producing Countries (CPOPC) been the right step to stimulating the national economy.

Performance and Emissions Characteristics of Vehicle Fuelled with Blended Palm Biodiesel Before and After Engine Overhaul

Rapid industrialization and growth in population have resulted in a rapid increase in energy demand. Pollutant emissions from diesel engines have caused major impacts in disturbing the ecological system. The Malaysian government implemented the B10 biodiesel program for the transportation sector and B7 for the industrial sector in 2019 to drive the demand for palm oil and increase the sustainability of energy resources. For future implementation, the government is looking toward for higher percentage of blended biodiesel, such as B30 and above. This paper presented the effect of engine overhaul on the performance and emissions of a vehicle fuelled with blended biodiesel (B10, B20 & B30) by comparing before and after the engine overhaul. By using a vehicle Toyota Hilux 2.5L, the vehicle was attached to a chassis dynamometer for determining its performance such as brake power and brake specific fuel consumption (BSFC) at 45% and 90% of Acceleration Pedal Position (APP), respectively. The exhaust gas emissions were measured using a 5-channel analyser for determining the carbon dioxide (CO2), carbon monoxide (CO) and nitrogen oxide (NOx). The experiment was conducted in a steady-state condition with a constant speed of 30, 60, 90, and 110 km/h simulating rural, urban, and motorway speeds. The performance results revealed that blended biodiesel B10, B20 and B30, produced higher brake power, and lower brake-specific fuel consumption after engine overhaul. Emissions results showed that CO was increased at 45% APP but decreased at a higher 90% APP, and in most cases, NOx and CO2 emissions were decreased with an increase in speed for both APP.

Palm oil-based biodiesel industry sustainability model using dynamic systems to balance food, energy, and export allocations

Indonesia stands as one of the foremost global palm oil producers, contributing to 85 % of the world's total production. Given the substantial output of Crude Palm Oil (CPO), these raw materials find diverse applications in daily life. In a bid to decrease reliance on fossil fuels, Indonesia initiated the blending of fossil fuels with biodiesel in 2006. Beyond energy purposes, CPO raw materials are crucial for both domestic consumption and exportation. However, improper management could lead to raw material shortages. This study employs dynamic system modeling to assess the availability of biodiesel, CPO production, and their equilibrium concerning Indonesia's blended biodiesel target. Key parameters, such as available land, anticipated land expansion, optimized CPO production on less productive land, Indonesian CPO exports, and the mandatory biodiesel program, will be considered. Various scenarios or tests will be applied to gauge the continuity of CPO and biodiesel production. The results will undergo validation using the MAPE method. The simulation's results reveal that the rate of new land expansion and the optimization of unproductive land have negligible effects on meeting the blended diesel target. Intensified optimization of unproductive land, particularly in community plantations, is crucial, necessitating incentives for enhanced replanting funds. A reduction of 8 % in CPO export level, in turn, has a noteworthy impact on achieving the blended diesel target in Indonesia.

Projection of Carbon Emissions from the Diesel, Biodiesel, and Battery Electric Vehicle in Indonesia: A Policy Scenario Analysis for Decarbonization of Transportation Sector

The Indonesian government is intensifying the mandatory biodiesel program to achieve the carbon emission reduction target. Although the emissions from the use of biodiesel are lower than diesel, its rapid development has raised concerns about other environmental issues, such as deforestation, hydrological disturbances, and biodiversity. At the same time, the global trend of electric cars offers a new alternative to the decarbonization of the transportation sector. Therefore, this study aims to compare the carbon emission reduction of biodiesel and electric vehicle policy scenarios. The baseline scenario is defined as full usage of diesel. The projection is conducted until 2060 using a model built with Vensim software. As a result, the biodiesel program with a 30% blending rate (B30) only reduced carbon emissions by 6.14 and 11.26 million tons in 2030 and 2060, respectively. Higher emissions reduction can be achieved by increasing the blending rate to 50% and 100%. On the other hand, emission reduction from electric vehicles program is very dependent on the energy mix of electricity generation. Under the 2021–2030 National Electricity Supply Business Plan (RUPTL) target, the electric vehicle scenario would produce higher emissions than the baseline scenario. However, there is a potential emission reduction of up to three times larger than B100 by the electric vehicle (EV) scenario if the EV transition is accompanied by an ambitious energy transition.

Juridical Review on the Mandatory Biodiesel Program for Maintaining National Energy Security in Indonesia

Indonesia commits to reducing emissions by 29% (unconditional) or 41% (conditional) in 2030, which can be achieved by encouraging the use of new and renewable energy (NRE) by 23% in 2025 while realizing national energy security. A biofuel development plan through a mandatory biodiesel program and green fuel utilization is the main priority to reduce fossil fuel consumption and achieve the energy mix target. As of January 1, 2020, through the mandatory biodiesel program, biodiesel utilization reached 30% (B30) for all diesel engine sectors, which is the highest biodiesel blending program in the world. However, the gap between government policies with emission regulation and existing vehicle technologies in this country might provide challenges in strengthening the sustainability of mandatory biodiesel programs. This study used a normative juridical method to assess the policy and enhance the regulation of the mandatory biodiesel program by obtaining library materials, theories, concepts, principles, and existing rules related to the law perspective. An appropriate and consistent energy mix policy, including its long-term strategy to increase biofuel utilization and maintain a mandatory biodiesel program, is needed to achieve a reducing emissions target. It is essential to strengthen and clarify the policy and road map. The vehicle technology and fuel quality were also crucial for enhancing emission regulation and eliminating low-quality fuels, maintaining a sustained biodiesel program, and achieving national energy security.

Biofuel Successful Strategies towards Sustainable Development: A Bibliometrics Analysis

This study aims to analyze biofuel use from oil palm as an alternative source of sustainable development. Data were obtained from the Scopus database with the last five years of publication. This research method uses a qualitative approach to the study of literature. Data analysis used bibliometric analysis with Vosviewer and NVIVO 12 plus software. The findings of this study indicate that several countries have used palm oil-based biodiesel as a transportation fuel, one of which is that Indonesia is the leading country in taking advantage of this opportunity. This can be seen from the development of the B30 from government and biodiesel programs which have become triggers for rising CPO prices worldwide and have impacted Fresh Fruit Bunches at the farm level. The study also found fluctuations in the publication of scientific research on biofuels. The most significant contribution to research articles comes from Malaysia. The university with the most number is University Malaya. The following research areas have the potential for further study: production of biofuels, vegetable oils, renewable diesel, and bio. Production energy, biodiesel, biomass, and biofuels are narratives of scientific research papers related to biofuels.

Biodiesel and Stock Prices: Evidence of Oil Palm Plantation Companies in Indonesia

This study examines the effect of the biodiesel program factor 20, return on assets (ROA), and debt to equity ratio (DER) on the stock prices of companies in the oil palm plantation sub-sector for the period 2016-2021. The selected research sample is seven oil palm plantation sector companies listed on the Stock Exchange Indonesian Effect (IDX) Panel data regression method was applied to estimate and analyze the research model. The results showed that return on assets (ROA), and debt to equity ratio (DER) have a positive effect but no significance on stock price, while the program of biodiesel 20 does not affect the stock price.

Utilization of palm oil based biofuel to support sustainable energy transition in Indonesia

Palm oil is a component that can be a mainstay to support the need for sustainable energy transition. In order to implement and achieve sustainable development, palm oil-based biofuel is being developed. In addition, the government has begun to develop a mandatory biodiesel program, so that an adequate supply of biofuel from palm oil is required. This research refers to the utilization of crude palm oil to produce biofuel supplies as a way of implementing and achieving sustainable development. This paper is based on bibliographical research and document studies. Palm oil can bring considerable opportunities for the benefit of the people and achieve government goals. However, this must be accompanied by good management, especially palm oil as a commodity that has a fairly complex upstream-downstream flow, followed by quite heavy problems and obstacles. The mandatory implementation of biodiesel is still constrained by various technical problems, namely infrastructure, quality, logistics, demand, and incentives. Implementation of biodiesel mandatory program policy also has an impact on the economic and environmental side. Biodiesel production can grow consistently with strategic policies across stakeholders.

The analysis and design of independent smallholders FFB palm oil supply system to support traceability of CPO product derivatives

The mandatory biodiesel program in Indonesia requires more Crude Palm Oil (CPO). POM requires FFB from independent smallholders to maximize CPO production. POM usually separates FFB supply based on internal and external sources. However, the segregation did not identify the farmer and farm location source of external FFB. This study aims to analyze and design an FFB supply system from the independent smallholder’s channel by identifying the farmers’ and farms’ source of FFB in every batch production of CPO and identifying Farms and farmers to support a traceability system of CPO derivative products. The New FFB delivery system services will be run on a cloud platform. The services are truck allocation, weigh scheduling, weighing, sorting, and CPO production. The Method for developing FFB delivery service using a system approach and System Development Life Cycle (SDLC). This research only discusses the analysis and design phase. The research output is a new design delivery system of FFB with Block Appointment Scheduling (BAS) for quality control of FFB to produce high-quality CPO. The simulation of BAS and CPO production is running based on the business process at PT. RSI.

A Biodiesel Production Technology from Used Cooking Oil: A Review

Used cooking oil is widely considered waste because it can damage the environment and cause health problems. Meanwhile, used cooking oil can be used as a substitute raw material for Crude Palm Oil (CPO) in Indonesia's national biodiesel program. Indonesia has a remarkable ability to use used cooking oil as a raw material for making biodiesel. If the 1.2 million kiloliters of biodiesel made from CPO raw materials are exchanged with used cooking oil raw materials, it can save approximately Rp. 4.2 trillion. There are various process technologies in making biodiesel, including microemulsion, pyrolysis, and transesterification. Transesterification is a process in which triglycerides and methanol are reacted to create biodiesel and glycerol as a by-product. Transesterification using a homogeneous catalyst has advantages such as lower cost, relatively short processing time, and higher yield of biodiesel products. Transesterification using a homogeneous catalyst has the disadvantage of a more complex separation. This literature study aims to explain the method for biodiesel production and becomes a reference in terms of process selection in biodiesel manufacturing plants, especially from used cooking oil as raw material.

Effect of Bio-additive Derived from Essential Oils on Particulate Matter and Water Content of B30 (30% of Biodiesel Blended Fuel)

Indonesia is one of the most biodiesel producers globally, with a total production capacity of around 12 million kL in 2020. Recently, Indonesia has been implementing a mandatory biodiesel program with at least 30% (B30). However, the utilization of B30 still has challenges faced regarding carbon deposition and water content. Therefore, this study aims to determine the effect of bio-additive from essential oil to reduce the particulate as well as the water content of B30. A single essential oil of clove terpene, rhodinol, and turpentine oil, as well as their mixtures, were used in this study. A concentration of 0.5% was used for a single essential oil of clove terpene, rhodinol, and turpentine oil. Meanwhile, the concentrations of clove terpene, rhodinol, and turpentine oil mixtures were 1: 1: 8 (BA1); 0.33: 0.67: 8 (BA2); 0.5: 1.5: 8 (BA3). For the case of single essential oil, the largest reduction in the particulate matter as much as 38.26, 62.85, and 91.11% was found by adding 0.5% clove terpene at 4, 6, and 14-μm filtration, respectively. Furthermore, the best reduction in water content was observed with the addition of turpentine, reducing the water content of B30 from 312 to 282 ppm.

Performance evaluation of four-wheel driving wheel tractor with diesel engine using biodiesel fuel

The Indonesian government is committed to increasing biodiesel usage as renewable energy by 23% of national energy consumption by 2025. Implementing the mandatory biodiesel program must be carried out sustainably to help reduce fossil energy consumption, reduce air pollution, and reduce the effect of greenhouse gases. The Ministry of Agriculture studied applying biodiesel from palm oil in agricultural machinery, especially four-wheeled tractors, to help implement agricultural mechanization in Indonesia. The research objective was to determine the effect of biodiesel on the performance of a four-wheeled tractor engine in several variations of the mixture to obtain the composition of biodiesel mixture that gave optimal engine performance. The experiment was conducted by testing the performance of a four-wheeled tractor engine on a laboratory scale referring to SNI 7146-2019, using biodiesel fuel with a mixture of B10 to B100 variations. The result showed that biodiesel affects the performance of a four-wheeled tractor engine. The efficiency of continuing engine power using biodiesel was the largest at B20 of 80.15% at the maximum governor and 80.97% at the standard PTO rotation of 540 rpm. The smallest power forwarding efficiency on the B100 was 76.12% at the maximum governor and 76.55% at 540 rpm PTO rotation. Biodiesel B20 provided the greatest maximum power of 23.55 kW, 44 kgf of torque, specific fuel consumption of 250.54 g/kW hours. At 540 rpm, PTO rotation produced a maximum power of 23.79 kW, 42 kgf of torque, the specific fuel consumption of 256.12 g/kW hours

Policy, regulation, development and future of biodiesel industry in Brazil

This article provides a detailed analysis of the Brazilian biodiesel market and policies over the past 16 years. The biodiesel market faced distinct periods, from the initial non-mandatory 2% to the actual 13% mixture in diesel. The legal and regulatory basis of the Biodiesel Program, as well as the tax benefits to poorer regions and family farmers, was also explained. The biodiesel industry increased from almost no biodiesel production in 2005 to more than 4 billion liters at the end of 2017. Soybean oil is the major raw material in Brazilian biodiesel (around 90%), although fats are also important. Other materials, such as sunflower oil, peanut oil, castor oil, palm oil (mainly in North and Northeast regions) and used oil (especially in the Southeast region) showed increased participation. Biodiesel content could reach 15% in 2023. That increase can lead to an expansion in biodiesel demand to 9 billion liters in 2024, which will need soy processing improvement, in order not to take place at the expense of an increase in deforestation and smallholder agriculture. Some recent events, such as the reduction of oil prices and the pandemic of Covid-19 can diminish the rate of that expansion.

Overview of Feedstocks for Sustainable Biodiesel Production and Implementation of the Biodiesel Program in Pakistan.

The energy demand of the world is skyrocketing due to the exponential economic growth and population expansion. To meet the energy requirement, the use of fossil fuels is not a good decision, causing environmental pollution such as CO2 emissions. Therefore, the use of renewable energy sources like biofuels can meet the energy crisis especially for countries facing oil shortages such as Pakistan. This review describes the comparative study of biodiesel synthesis for various edible oils, non-edible oils, and wastes such as waste plastic oil, biomass pyrolysis oil, and tyre pyrolysis oil in terms of their oil content and extraction, cetane number, and energy content. The present study also described the importance of biodiesel synthesis via catalytic transesterification and its implementation in Pakistan. Pakistan is importing an extensive quantity of cooking oil that is used in the food processing industries, and as a result, a huge quantity of waste cooking oil (WCO) is generated. The potential waste oils for biodiesel synthesis are chicken fat, dairy scum, WCO, and tallow oil that can be used as potential substrates of biodiesel. The implementation of a biodiesel program as a replacement of conventional diesel will help to minimize the oil imports and uplift the country’s economy. Biodiesel production via homogeneous and heterogeneous catalyzed transesterification is more feasible among all transesterification processes due to a lesser energy requirement and low cost. Therefore, biodiesel synthesis and implementation could minimize the imports of diesel by significantly contributing to the overall Gross Domestic Product (GDP). Although, waste oil can meet the energy needs, more available cultivation land should be used for substrate cultivation. In addition, research is still needed to explore innovative solvents and catalysts so that overall biodiesel production cost can be minimized. This would result in successful biodiesel implementation in Pakistan.

India’s Biodiesel Programme: A Pathway for Sustainable Entrepreneurship, Employment Generation and Inclusiveness

This paper seeks to address whether India’s biodiesel programme would create sustainable entrepreneurship opportunities in the long run, whether it is inclusive in nature and what would be its impact in terms of employment generation. Using the available primary and secondary evidences it is estimated that a 20 per cent biofuel blending through domestic feedstock production would create up to 14.45 million sustainable entrepreneurs, primarily micro and small entrepreneurs, and 331.17 million man-days, mostly for unskilled or semi-skilled people, per year by 2025. The two most important factors that restrain the success of the programme are uncertainties in yield and fluctuating seed prices for the farmers as the latter is linked to global crude prices. It suggests fixing minimum support prices for seeds and stabilising yield at a higher level through R&D, particularly with the Government initiatives.

Variability and relationships between characters of physic nut (Jatropha curcas L.) in Burkina Faso

Jatropha curcas is a highly promising species for biodiesel production in Burkina Faso and other countries in the tropics. It is rustic, grows in warm regions and is easily cultivated. These characteristics and high-quality oil yields from the seeds have made it a priority for biodiesel programs. Consequently, this plant merits genetic investigations aimed at improving yields. The present study was conducted to determine the extent of genetic variability and relationships among 30 accessions from Burkina Faso using 7 qualitative characters and 20 quantitative characters. For most of the traits, there were highly significant differences among the accessions. A positive and significant correlation between the 100-seed weight trait and the oil content trait was observed. The oil content trait is significantly and positively influenced by growth traits such as plant height and crown diameter. Based on the petiole base pigmentation, three morphotypes were identified: green morphotype, purple morphotype and brown morphotype. The green morphotype was characterized by very high oil content and high 100-seed weight while the brown morphotype presents low oil content and low 100-seed weight. The purple morphotype registered a high oil content and medium 100-seed weight. These results are important for the continuity of breeding programs, aimed at obtaining cultivars with high grain yield and high oil content in seeds.

The goals of the National Biodiesel Program: between planning and implementation

Abstract This work evaluated whether the main goals established by the National Program for the Production and Use of Biodiesel (PNPB) were achieved between 2004 and 2018. For this purpose, reports and surveys prepared by public agencies and soybean producers were used. The results reveal that expectations of improvement in living conditions in rural areas stemming from PNPB implementation were frustrated: there were job losses in agricultural occupations, continuity of rural exodus, increase in land concentration, reduction in the contingent of family farmers, non-inclusion of poor family farmers from the North and Northeast regions. Of the original PNPB goals, only the minimum percentage of biodiesel to diesel was achieved satisfactorily, but dependence on imported diesel increased, even with the development of biodiesel production.

Biodiesel auctions in Brazil: Symmetry of bids and informational paradigm

In this paper, we examine the winning bids of the biodiesel auctions conducted by the National Regulatory Agency for Oil, Gas, and Biofuels (ANP) in Brazil from 2012 to 2019. The public policy to develop the Brazilian biodiesel market had on the auction a fundamental pillar, providing stability for both suppliers and demanders. During the study period, the auction design had a stable framework of rules, enabling conditions for understanding competitors' behavior by studying their bids. Initially, we present an overview of the state of the art on the biodiesel program in Brazil and highlight the scarcity of published studies on biodiesel auctions. In sequence, we classify the auction according to the economic theory, showing that it fits the multiunit, sequential, first-price English auction design, and we review the specific literature for this auction model. Then, we analyze the database structure and investigate the presence of information asymmetries among bidders, using cumulative probability comparison as well as the two-sample Kolmogorov-Smirnov test and the t-statistic test for means. Results offer strong evidence in favor of information symmetry. Later, we check the hypothesis of common values on the data, applying a parametric test to verify the presence of the winner's curse. Results corroborate the existence of the winner's curse and the common values paradigm, discarding the application of the independent private-values paradigm to the data. Finally, we comment on the possibility of further studies on the topic.

The Challenges of a Biodiesel Implementation Program in Malaysia

The palm biodiesel industry is facing many challenges implementing biodiesel program in Malaysia. This paper addresses the importance of the B10 blend (10% biodiesel, 90% petroleum diesel), global challenges of palm oil import and export, and protective measures for continuous positive growth of the palm oil sector. Palm oil is the backbone of Malaysia’s economy, covering more than 5% of its gross domestic product (GDP). The key steps taken by the Malaysian government for the successful implementation of the B10 program are discussed in this review study. Till now, B5 and B7 biodiesel programs have been successfully implemented in Malaysia. The B10 biodiesel program is attractive because of the developed local palm oil sector. The B10 biodiesel program will increase the use of renewable energy sources, and is expected to increase the productivity of palm oil and biodiesel implementation in the country. Despite successful B5 and B7 programs, Malaysia is facing challenges for the implementation of biodiesel due to fluctuation in crude palm oil prices, low domestic usage of palm oil, and vehicle warranty. The improvement of palm oil and promotion of B10 through targeted agencies in the central region of Malaysia will help to implement the biodiesel program successfully.

Exploring the Brazilian experience to design and simulate the impacts of a biodiesel program for sub-Saharan countries: The case of Guinea-Bissau

In most sub-Saharan countries, development is severely limited by the scarcity of electricity and fuel for transportation as well as the fragility of institutional organizations. Bioenergy is a natural candidate for the diversification of the energy matrix and the socioeconomic development in developing countries. Exploring the concept of “institutional transplant”, this study designs a preliminary institutional and organizational framework that could be taken as a starting point for a Program for the Production of Biodiesel in Guinea-Bissau based upon the “transplant” of the Brazilian experience in biodiesel production. Scenarios of Guinea-Bissaús future energy needs were built and simulations were conducted to project the volumes of biodiesel production and assess their potential socioeconomic impacts. The adoption of the B10 blend (10% biodiesel with 90% diesel) would have the potential to create 35,785 temporary jobs. With each job paying 1.5 minimum salaries, the total income generated would be US$5,162,701.00/year. Given that more than 60% population of Guinea-Bissau lives on less than US$ 1.0 a day, biodiesel production has considerable potential to alleviate poverty. The B10 blend could reduce the dependency on imported diesel.