Biodiesel Component Supply In Europe, Minister Of SOEs Appreciation For Pertamina Group

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir appreciates Pertamina Group's expansion of green diesel components (GDC) or biodiesel components in the European market. Erick said, this component has not yet been absorbed by the domestic market.

The Pertamina Group expansion is carried out by the Pertamina International Refinery (KPI), Pertamina International Marketing and Distribution (PIMD) and Pertamina International Shipping (PIS).

Erick said, this new and renewable energy (EBT) has a better environmentally friendly advantage and has better quality than conventional biodiesel.

"The raw state of biodiesel is generally from viral vegetable oil, but it can also use used cooking oil (UCO) and waste residue from animal fats," Erick said while witnessing the signing of a memorandum of understanding between the Pertamina Group and European company Trafigura in London, England, quoted Sunday, October 2.

Furthermore, Erick said that the GDC demand in the European Union is divided into two categories, namely the CPO base of around 150,000 metric tons per year and the base of UCO 300,000 to 500,000 metric tons per year. Trafigura has expressed interest in buying the Pertamina Group GDC.

"Trafigura has even made purchases to the Pertamina Group. This agreement is carried out so that GDC sales can run long terms," said Erick.

Potential Consumption FAME

Erick said the potential consumption of FAME and European biodiesel raw materials will continue to increase as Europe's Renewable Energy (RED II) targets for the use of renewable energy at 14 percent in the transportation sector throughout Europe in 2030, up from the previous 10 percent target.

Furthermore, Erick said that UCO raw materials are preferred because of the double calculation mechanism in Europe.

"Meanwhile, Palm Oil is under pressure because several European countries have banned the use of Palm Oil raw materials in the long term, one of which is the ban on the use of Palm Oil-based GDCs in Europe," explained Erick.

Erick hopes that the penetration of the GDC market will not stop here. He also asked Pertamina Group to continue to open up opportunities to increase penetration in becoming a GDC player in the international arena.

According to Erick, the interest of European companies provides evidence that the quality of the KPI GDC is able to compete with other companies.

"With the huge potential that exists in Europe, even Asia, this is a great opportunity for Pertamina Group to continue to expand the reach of GDC products," said Erick.