Indonesia to Push Use of B20 Biodiesel Fuel Despite Less Efficiency

By: Jakarta Globe Feb 24, 2015

Jakarta. The Energy and Mineral Resource Ministry has finished a road trial for B20, a type of
biodiesel containing 20 percent fatty acid methyl ether, that could pave the way for the
government’s plan to have all diesel-engine vehicles use the fuel next year.

The trial concluded that B20 is 3.97 percent less efficient compared to existing diesel fuel and
that it increases fuel consumption by up to 3 percent, said Dadan Kusdiana, the bioenergy
director at the ministry, on Monday.

B20 also clogged the engine after 7,500 kilometers of use, but that can be fixed by changing
the fuel filter, he said.

Heavy machinery would have an increase in zinc deposits in the engine after prolonged use
of B20, and the ministry recommends producers to change parts of the machinery to contain
less zinc, Dadan said.

The government does not consider the issues to be significant to cancel its plan to impose
mandatory use of B20 in 2016, he said, and the government urged all vehicle producers to be
prepared to follow any recommendation as a result of the trial.

“The ministry is not planning to continue the road trial, but there are several ATPMs [single agent
brand holders] who would continue such a road trial,” said Dadan.
http://www.biodiesel.com/biodiesel/what-is-biodiesel/
http://biodiesel.org/what-is-biodiesel/biodiesel-basics

Biodiesel Basics

What is biodiesel?

Biodiesel is a renewable, clean-burning diesel replacement that is reducing U.S. dependence on

foreign petroleum, creating jobs and improving the environment. Made from a diverse mix of
feedstocks including recycled cooking oil, soybean oil, and animal fats, it is the first and only
EPA-designated Advanced Biofuel in commercial-scale production across the country and the
first to reach 1 billion gallons of annual production. Meeting strict technical fuel quality and
engine performance specifications, it can be used in existing diesel engines without modification
and is covered by all major engine manufacturers’ warranties, most often in blends of up to 5
percent or 20 percent biodiesel. It is produced at plants in nearly every state in the country.

With just over a decade of commercial-scale production, the industry is proud of its careful
approach to growth and strong focus on sustainability. The biodiesel market has increased from
about 25 million gallons in the early 2000s to more than 2.8 billion gallons of advanced biofuel
in 2016. This represents a small but growing component of the annual U.S. on-road diesel market
of about 35 billion to 40 billion gallons. Consistent with projected feedstock availability, the
industry has established a goal of producing about 10 percent of the diesel transportation market
by 2022.

Reaching that goal would significantly lessen U.S. dependence on imported oil, bolstering
national security and reducing our trade deficit. At the same time, biodiesel’s growth would
boost the U.S. economy, not just by creating jobs but also by reducing our dependence on global
oil markets and vulnerability to price spikes. There are currently about 200 biodiesel plants
across the country – from Washington state to Iowa to North Carolina – with registered capacity
to produce some 3 billion gallons of fuel. The industry is supporting nearly 48,000 jobs,
generating billions of dollars in GDP, household income and tax revenues. The industry’s
economic impact is poised to grow significantly with continued production increases. The
industry supports jobs in a variety of sectors, from manufacturing to transportation, agriculture
and service.

The EPA has recognized biodiesel’s environmental benefits by classifying it as an Advanced

Biofuel, making biodiesel the only commercial-scale U.S. fuel produced nationwide to meet the
agency’s advanced criteria. According to the EPA, biodiesel reduces greenhouse gas emissions
by at least 57 percent and up to 86 percent when compared to petroleum diesel – making it one
of the most practical and cost-effective ways to immediately address climate change. In addition,
biodiesel sharply reduces major tailpipe pollutants from petroleum diesel, particularly from older
diesel vehicles. This is important because the EPA has consistently cited diesel exhaust –
primarily from older trucks, buses and other vehicles – as one of the nation's most dangerous
pollutants.

Biodiesel is produced using a broad variety of resources. This diversity has grown significantly
in recent years, helping shape a nimble industry that is constantly searching for new technologies
and feedstocks. In fact, industry demand for less expensive, reliable sources of fats and oils is
stimulating promising research on next-generation feedstocks such as algae and camelina.

Technical Definition for Biodiesel (ASTM D 6751) and Biodiesel Blend:

Biodiesel, n - a fuel comprised of mono-alkyl esters of long chain fatty acids derived from
vegetable oils or animal fats, designated B100, and meeting the requirements of ASTM D 6751.

Biodiesel Blend, n - a blend of biodiesel fuel meeting ASTM D 6751 with petroleum-based
diesel fuel, designated BXX, where XX represents the volume percentage of biodiesel fuel in the
blend.

How is biodiesel made?

Biodiesel is made through a chemical process called transesterification whereby the glycerin is
separated from the fat or vegetable oil. The process leaves behind two products -- methyl esters
(the chemical name for biodiesel) and glycerin (a valuable byproduct usually sold to be used in
soaps and other products).

Is Biodiesel the same thing as raw vegetable oil?

No! Fuel-grade biodiesel must be produced to strict industry specifications (ASTM D6751) in
order to ensure proper performance. Biodiesel is the only alternative fuel to have fully completed
the health effects testing requirements of the 1990 Clean Air Act Amendments. Biodiesel that
meets ASTM D6751 and is legally registered with the Environmental Protection Agency is a
legal motor fuel for sale and distribution. Raw vegetable oil cannot meet biodiesel fuel
specifications, and is not a legal motor fuel that meets the diesel fuel specifications of ASTM
D975.

For entities seeking to adopt a definition of biodiesel for purposes such as federal or state statute,
state or national divisions of weights and measures, or for any other purpose, the official
definition consistent with other federal and state laws and Original Equipment Manufacturer
(OEM) guidelines is as follows:
Biodiesel is defined as mono-alkyl esters of long chain fatty acids derived from vegetable oils or
animal fats which conform to ASTM D6751 specifications for use in diesel engines. Biodiesel
refers to the pure fuel before blending with diesel fuel. Biodiesel blends are denoted as, "BXX"
with "XX" representing the percentage of biodiesel contained in the blend (ie: B20 is 20%
biodiesel, 80% petroleum diesel).

Why should I use biodiesel?

Biodiesel is better for the environment because it is made from renewable resources and has
lower emissions compared to petroleum diesel. It is less toxic than table salt and biodegrades as
fast as sugar. Produced domestically with natural resources, its use decreases our dependence
on imported fuel and contributes to our own economy.

Where do I get biodiesel?

Biodiesel is available nationwide. It can be purchased directly from biodiesel producers and
marketers, petroleum distributors, or at a handful of public retailers throughout the nation.

Permen ESDM No. 41/2018: Badan Usaha BBM Wajib Campurkan

Biodiesel dengan BBM Solar
Menindaklanjuti Peraturan Presiden (Perpres) Nomor 66 Tahun 2018 tentang Perubahan Kedua
atas Peraturan Presiden Nomor 61 Tahun 2015 tentang Penghimpunan dan Penggunaan Dana
Perkebunan Kelapa Sawit, Kementerian Energi dan Sumber Daya Mineral (ESDM) memandang
perlu mengatur kembali ketentuan mengenai pengadaan bahan bakar nabati jenis biodiesel,
verifikasi, pengawasan, dan sanksi sebagaimana dimaksud dalam Peraturan Menteri ESDM
Nomor 26 Tahun 2016.
Atas pertimbangan tersebut pada 23 Agustus 2018, Menteri ESDM Ignasius Jonan telah
menandatangani Peraturan Menteri (Permen) ESDM Nomor 41 Tahun 2018 tentang Penyediaan
dan Pemanfaatan Bahan Bakar Nabati Jenis Biodiesel Dalam Kerangka Pembiayaan Oleh Badan
Pengelola Dana Perkebunan Kelapa Sawit.

Dalam Permen ini disebutkan, Badan Usaha BBM wajib melakukan pencampuran Bahan Bakar
Nabati (BBN) Jenis Biodiesel dengan BBM jenis Minyak Solar sesuai dengan penahapan
kewajiban minimal pemanfaatan BBN Jenis Biodiesel yang ditetapkan oleh Menteri.

“Badan Usaha BBM sebagaimana dimaksud, meliputi: a. Badan Usaha BBM yang memiliki kilang
dan menghasilkan BBM jenis Minyak Solar, dan b. Badan Usaha BBM yang melakukan impor
BBM Jenis Minyak Solar,” bunyi Pasal 3 ayat (2) Permen ini.

Pengadaan BBN Jenis Biodiesel, menurut Permen ini, dilaksanakan untuk pencampuran: a. Jenis
Bahan Bakar Minyak (BBM) tertentu; dan b. Jenis Bahan Bakar Minyak Umum, dan
diselenggarakan dengan periode setiap 12 (dua belas) bulan, dimulai bulan Januari dan proses
persiapan pengadaannya paling lambat 90 (sembilan puluh) hari sebelum periode pengadaan.

Ditegaskan dalam Permen ESDM ini, Dirjen Migas menyampaikan Badan Usaha BBM yang akan
melaksanakan pengadaan BBN Jenis Biodiesel dalam kerangka pembiayaan oleh Badan Pengelola
Dana Perkebunan Sawit yang disebut Badan Pengelola Dana kepada Dirjen EBTKE Kementerian
ESDM.

Selanjutnya, setelah melalui verifikasi dari Tim Evaluasi Pengadaan BBN Jenis Biodiesel, Menteri
akan menetapkan daftar Badan Usaha BBM dan Badan Usaha BBN Jenis Biodiesel beserta alokasi
volume BBN Jenis Biodiesel untuk masing-masing Badan Usaha BBM.

“Badan Usaha BBN Jenis Biodiesel yang telah mendapatkan penetapan wajib menyalurkan BBN
Jenis Biodiesel kepada Badan Usaha BBM sesuai dengan: a. alokasi volume BBN Jenis Biodiesel;
dan b. waktu dan spesifikasi BBN Jenis Biodiesel yang disepakati dalam kontrak,” bunyi Pasal
Pasal 10 ayat (10b) Permen ini.

Badan Usaha BBN Jenis Biodiesel yang telah menandatangani kontrak dengan Badan Usaha BBM
dan telah menyalurkan BBN Jenis Biodiesel, menurut Permen ESDM ini, berhak memperoleh
Dana Pembiayaan Biodiesel dari Badan Pengelola Dana Perkebunan Sawit.

“Pembayaran Dana Pembiayaan Biodiesel kepada Badan Usaha BBN Jenis Biodiesel sebagaimana
dimaksud dilakukan paling lambat setiap 1 (satu) bulan setelah Badan Pengelola Dana menerima
hasil verifikasi,” bunyi Pasal 15 Permen ini.

Sanksi

Ditegaskan dalam Permen ESDM ini, Badan Usaha BBM yang tidak melakukan pencampuran
Bahan Bakar Nabati (BBN) Jenis Biodiesel dengan BBM jenis Minyak Solar dikenai sanksi
administratif berupa denda sebesar Rp6.000,00 per liter volume BBN Jenis Biodiesel yang wajib
dicampur, dan/atau pencabutan izin usaha.
Saksi administratif sebagaimana dimaksud, menurut Permen ini, ditetapkan oleh Menteri melalui
Dirjen Migas.

Dalam hal terjadi peningkatan penjualan BBM jenis minyak solar, menurut Permen ini, alokasi
volume BBN Jenis Biodiesel yang telah ditetapkan oleh Menteri dapat disesuaikan.

Terkait terbitnya Peraturan Menteri ESDM ini, maka periode pelaksanaan pengadaan BBN Jenis
Biodiesel oleh PT Pertamina (Persero) dan PT AKR Corporindo Tbk dalam kerangka dana
pembiayaan Biodiesel untuk bulan Mei sampai dengan Oktober 2018, disesuaikan menjadi periode
bulan Mei 2018 sampai dengan Desember 2018.

“Peraturan Menteri ini mulai berlaku pada tanggal diundangkan,” bunyi Pasal 28 Peraturan
Menteri ESDM Nomor 41 Tahun yang telah diundangkan oleh Dirjen Perundang-undangan
Kementerian Hukum dan HAM Widodo Ekatjahjana pada 24 Agustus 2018. (JDH Kementerian
ESDM/ES)