Pertamina Patra Niaga, a subsidiary of State-owned energy company PT Pertamina, plans to begin production of hydrotreated vegetable oil (HVO) biofuel at its Dumai refinery in Riau. Currently, HVO production is based at the Cilacap refinery in Central Java.
“We are ready to produce HVO as the infrastructure and logistics systems are in place. Hopefully, we can bring this product to a wider market soon,” Maya Kusmaya, Pertamina Patra Niaga’s Marketing and Trading Director, said in Sorowako, South Sulawesi, on Thursday, November 7, 2024.
Pertamina has already supplied HVO biofuel in limited quantities to mining company PT Vale Indonesia, fueling two of Vale’s mining trucks from Komatsu and Caterpillar.
In addition to the Dumai refinery, Maya mentioned that the Red-White Catalyst Factory in Cikampek, West Java, a joint venture between Pertamina and State-owned fertilizer company PT Pupuk Indonesia, will also contribute to HVO production.
Pertamina’s website cited HVO is produced by hydrogenating vegetable oils or animal fats, resulting in a cleaner fuel compatible with diesel engines without extensive modifications.
The fuel offers a lower carbon footprint than conventional diesel and can be sourced from waste vegetable oils and animal fats, resulting in better combustion efficiency and engine performance.
The adoption of HVO does present challenges, including high production costs and limited raw material supplies, with vegetable oils like palm oil competing for land use with food production.
The environmental impact of sourcing palm oil, often associated with deforestation, remains a topic of debate.
Vale Indonesia has been conducting a month-long trial, from October 14 to November 14, 2024, using HVO in its mining trucks.
Preliminary results show that HVO use significantly reduces greenhouse gas emissions − up to 80 percent − while boosting operational efficiency by nearly 70 percent.
“The trucks and fuel are ready, so we could execute it without any adjustments,” Abu Ashar, PT Vale’s Director and Chief Operations and Infrastructure Officer, said while highlighting the ease of HVO integration.
