In order to accelerate the use of biofuel, the Minister of Energy and Mineral Resources have issued Ministerial Decree No. 32/2008 regarding the supply, use, and sale of Biofuel as an alternative form of energy. One example of this ministerial decree is the regulation on mandatory use of biofuel in the transportation, industry, commercial, and power sector until 2025, which is to be carried out in several phases. For powerplants, these phases include the use of biodiesel amounting to 20% and biofuel amounting to 10% towards the total needs of powerplants.
The Department of Energy and Mineral Resources through its Directorate General for Electricity and Energy Usage, in coordination with Neaue Maschinbeau Halberstadt GmBH (NMBH) have completed the converter installation needed for biofuel conversion of a 10 MW Diesel Power Plant powerplant in Riau. NMBH is a German private company which has carried out intensive research for conversion development and biofuel powerplant.
By adding a converter, a diesel fueled powerplant will be able to fueled by biofuel, which in this case is Crude Palm Oil (CPO). Using this technology, Crude Palm Oil which is in abundant in the local area will be able to be directly used as fuel. Use of this converter in a 10 MW powerplant will be the first in Asia.
The suceess of this program will help boost Indonesia’s effort in maximizing the use of biofuel, as more than 1.600 of PLN’s powerplant is still powered by diesel. There are several benefits to be taken from biofuel use, including efficient fuel costs, as the current price of CPO is half of that of diesel price. Biofuel will also potentially reduce air pollution because it is based on renewable energy.
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