JAKARTA – The increase in palm oil prices is likely to continue, triggered by the high demand side of the market.
Recently, the maritime industry is said to be a new player ready to devour this renewable energy source. The analysis was delivered by former Deputy Minister of Energy and Mineral Resources Arcandra Tahar.
According to him, currently trading and shipping activities using ship services are increasing in the pandemic era. This condition has triggered an increase in carbon emissions and exhaust gases.
"For this reason, the International Marine Organization (IMO) is working hard to reduce more greenhouse gases polluting the atmosphere," he said via his personal Instagram account @arcandra.tahar quoted on Sunday, April 17.
The former Minister of Energy and Mineral Resources said that players in the maritime industry are currently targeting a number of options for using environmentally friendly fuels to replace fossil energy sources that have been used so far.
The first is to use biofuels derived from palm oil (FAME) or from Hydrotreated Vegetable Oil (HVO).
"The main obstacle for this biofuel is its availability because FAME and HVO are also used for the food industry such as cooking oil," he said.
Arcandra then explained that the competition between biofuels for clean energy and biofuels for the food industry would cause problems in the future.
“Choosing between the two options is certainly a dilemma. Moreover, the impact of the competition can be felt today," he said.
For information, one of the derivative products of palm oil, namely cooking oil, is currently facing a significant price spike.
This is inseparable from the orientation of the use of domestic palm oil which is also channeled for the benefit of the B30 program. Not to mention the fulfillment of the export market with a better price offer.
In addition to oil from vegetable sources, Arcandra explained that cleaner energy sources can be obtained from synthetic oil and LNG fuel.
"This is an energy option in the transition period, God willing, it will be able to make our earth cleaner," concluded Arcandra.
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