"Green fuel" is fuel made from organic matter, such as vegetable oil from palm oil, turnips, sunflower seeds, or oil from animal fat.
This type of fuel, also known as biofuel, has lower carbon emissions from combustion compared to fossil fuels.
Therefore, the use of green fuel is expected to minimize greenhouse gas emissions into the atmosphere and contribute to the prevention of climate change.
According to the International Energy Agency (IEA), global demand for green fuel totaled 159.1 million kiloliters (kl) in 2019. However, demand decreased in 2020 with the onset of the pandemic and only began to recover in 2021.
"Biofuel demand recovered in 2021 from the impact of Covid-19, reaching levels close to those of 2019," the IEA stated in its May 2022 Renewable Energy Market Update report.
According to IEA data, during the 2019-2021 period, the green fuel with the highest global demand was ethanol, a liquid fuel derived from sugarcane or starchy plants such as cassava, wheat, sorghum, and others.
Global demand for biodiesel and renewable diesel was lower, as shown in the graph.
Indonesia itself, through Pertamina, has been able to produce bioavtur, biodiesel, and renewable diesel.
Bioavtur is a liquid fuel made from a mixture of palm kernel oil and avtur (aviation turbine fuel). Biodiesel is made from a mixture of processed palm oil and diesel.
Renewable diesel is made from vegetable oil processed using a hydrogenation method (hydrotreated vegetable oil/HVO), which transforms liquid oil/fat into a solid like margarine by adding hydrogen.
However, according to Pertamina, this green fuel is not popular in the Indonesian market. This was stated by Milla Suciyani, Corporate Secretary of the Refining & Petrochemical Subholding of PT Kilang Pertamina Internasional (KPI).
"Because the product price is still high and demand in the green industry sector is very limited, it is not yet feasible for retail. As an alternative, we are trying the foreign market where demand has already been established," Milla told Katadata.co.id on Tuesday (5/7/2022).
(Also Read: Could Replace Diesel, This is the Projection of Indonesia's Biodiesel Production in 2022)