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USLI : COP26 AGREEMENT TRIGGERS INCREASE IN BIODESEL DEMAND

25 November 2021

The results of the United Nations climate conference (COP26), which ended last Saturday (13/11), reached an agreement that fossil fuels are the main cause of global warming. From the results of the conference, participants agreed to gradually reduce the use of coal, which is called the worst fossil fuel for greenhouse gases.

“As we all know, several countries that have been using coal as energy have always rejected the issue of global warming. The reason is because the use of coal is not environmentally friendly and one of the causes of global warming. With the agreement to reduce the use of coal is good news in limiting global warming which is increasingly worrying for the survival of creatures, “said President Director of PT Mahkota Group Tbk, Usli Sarsi recently.

In addition, Usli added, the gradual reduction in the use of coal, of course, countries that have been using coal as an energy source will look for alternative energy that is certainly environmentally friendly. One source of energy to replace coal is biodiesel.

It is certain that the demand for biodiesel will continue to increase, not only domestically due to the government's biodiesel program, but also abroad due to the reduction of fossil fuel use.

Biodiesel producing countries are competing to increase biodiesel production to meet the needs of both domestic and foreign markets.

Currently, Indonesia is the largest producer of biodiesel in the world with production reaching 137 thousand barrels of oil per day, higher than the biodiesel production figures of the United States with 112 thousand barrels, Brazil 99 thousand barrels, and Germany 62 thousand barrels of oil per day.

“I believe Indonesia will be able to continue to increase biodiesel production,” Usli said.

Biodiesel production in Indonesia has been going on for a long time and has continued to increase. Based on data from the Ministry of Energy and Mineral Resources (ESDM) in 2009 biodiesel production was 190 thousand kiloliters (kl), in 2012 it rose to 2.2 million kl. In 2015 it rose again to 2.6 million kl, in 2018 it rose to 6.2 million kl and in 2020 it rose to 8.59 million kl.


Production of Palm Oil

Usli said, the need for palm oil is not only for biodiesel as an energy source, but also other needs such as food, consumer goods and other needs.

“The downstreaming of palm oil products is absolutely necessary and the government has prepared the downstreaming of palm oil products,” Usli said.

Palm oil products can increase productivity, support downstream activities such as oleofood, oleochemicals and biofuels, create ecosystems, governance, capacity building and technology development for palm oil business development. This will automatically create new jobs and certainly absorb labor, although so far the palm oil industry has contributed to the creation of jobs both directly and indirectly.

Source https://medan.tribunnews.com/2021/11/25/usli-kesepakatan-cop26-picu-peningkatan-permintaan-biodisel