Kilang Pertamina Internasional Expands Green Fuel Efforts with Used Cooking Oil Processing at Cilacap Refinery

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December 18, 2024

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(Kilang Pertamina Internasional) PT Kilang Pertamina Internasional (KPI) is taking significant steps to produce more environmentally friendly fuel products, marked by its recent partnership to process used cooking oil (UCO). In early December, KPI President Director Taufik Aditiyawarman and Heru Fidiyanto, President Director of PT Gapura Mas Lestari (GML), signed a Memorandum of Understanding (MoU) securing the supply of feedstock for the Cilacap Green Refinery project. This initiative represents a major strategic move for KPI in its pursuit of green fuel development in Indonesia.

The Cilacap Green Refinery project aims to process 6,000 barrels per day of UCO to produce Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF). The refinery is expected to produce around 300,000 kiloliters of these green fuels annually.

Already operational, the Cilacap Refinery currently produces HVO and SAF. The HVO is derived from Refined Bleached Deodorized Palm Oil (RBDPO) and is marketed as Pertamina Renewable Diesel (RD), made entirely from vegetable oils. SAF, on the other hand, is produced from Refined Bleached Deodorized Palm Kernel Oil (RBDPKO), a product of palm kernel oil processing.

The HVO produced at the Cilacap refinery will be used as a blending component in diesel fuel, offering superior quality compared to traditional FAME biodiesel. It is also designed to meet stringent standards for markets in four-season countries like those in Europe and North America. Meanwhile, the SAF will contribute to the growing demand for sustainable aviation fuel, aligning with Indonesia's national roadmap for SAF development.

Taufik Aditiyawarman highlighted KPI’s ongoing commitment to sustainability and innovation in energy. “This Green Refinery project is not just about providing alternative energy; it’s about creating added value for local communities, supporting regional growth, and minimizing environmental impact,” Taufik said.

He also expressed confidence that the project’s success would come through collaboration. “With the commitment of all stakeholders, this project will overcome challenges and become a model for sustainable energy development,” he added. “Together, let’s build a better future for our country.”

The Green Refinery initiative in Cilacap aligns with global sustainability goals, particularly in addressing climate change (SDG 7 and SDG 13). By processing UCO into renewable fuels, the project supports both the transition to cleaner energy and efforts to reduce greenhouse gas emissions and air pollution.

This collaboration marks an important step in Indonesia’s energy transition, strengthening public-private partnerships aimed at achieving sustainable energy goals. The MoU signing underscores Indonesia’s commitment to cleaner energy and a more sustainable future.

PT GML, a leading UCO collector and exporter with over 20 years of experience in the industry, will play a key role in supplying the feedstock for the Cilacap Green Refinery.

“Through this partnership, KPI and PT GML aim to ensure a reliable supply of UCO for the Green Refinery project,” Taufik concluded. READ MORE

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Pertamina signs UCO-supply agreement for Cilacap biorefinery in Indonesia (Pertamina/Biobased Diesel Daily)
Indonesia’s Pertamina seeks UCO for SAF output (Argus Media)
Pertamina secures feedstock for Cilacap refinery’s SAF-HVO expansion: PT Pertamina entered an MOU with PT Gapura Mas Lestari for supply of biogenic feedstock to support the second phase of a renewable fuels production unit at PT KPI's Cilacap complex in Central Java. (Oil & Gas Journal)
Pertamina unit to produce ISCC-certified SAF in Q1 (Reuters)
Achieving ISCC EU and CORSIA International Certification, Kilang Pertamina Internasional Ready to Produce the First Certified SAF in Indonesia and Region (KPI Pertamina)
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Except from Argus Media: Indonesia's state-owned refiner Pertamina is seeking around 500t of used cooking oil (UCO) for trial production of co-processed sustainable aviation fuel (SAF) at its Cilacap refinery in the first quarter of 2025, sources close to the company said.

The refiner is seeking UCO with better specifications from domestic Indonesian suppliers, said traders and sellers. The UCO will likely have a maximum of 2pc free fatty acid (FFA) content — compared with Argus-assessed maximum 5pc FFA Indonesian UCO — as well as low metals and chlorides content, said a trader, although this could not be confirmed with Pertamina.

Earlier in December, Pertamina's refining and petrochemical subholding company, Kilang Pertamina Internasional (KPI), signed an initial agreement with Indonesian UCO supplier, PT Gapura Mas Lestari. Gapura will be supplying UCO to Pertamina in 2027, sources from both companies said.

Indonesia's co-ordinating Ministry for Maritime Affairs and Investment had announced in September that international flights departing the country will be required to use 1pc SAF in their fuel mix in 2027. This will rise to 2.5pc by 2030, 12.5pc by 2040, 30pc by 2050, and 50pc by 2060.

Pertamina's "green refinery" at its 348,000 b/d Cilacap plant aims to process 6,000 b/d of UCO to produce hydrotreated vegetable oil (HVO) and SAF, when its second phase comes on line, targeted to be in 2026. Cilacap is eventually expected to produce around 300,000 kilolitres of HVO and SAF annually.

Pertamina said Cilacap's HVO will be used as a blending component in diesel fuel with better quality, compared with traditional fatty acid methyl ester biodiesel. The firm added that its HVO is also designed to meet stringent market standards in countries like those in Europe and North America. Its SAF will meet Indonesia's demand, which is likely to rise after the country released its national roadmap for SAF development in September.

Cilacap currently produces HVO, but from refined, bleached and deodorized palm oil, and SAF from refined, bleached and deodorized palm kernel oil, a product of palm kernel oil processing. READ MORE

Excerpt from Reuters: The firm received certification for SAF in December including the International Sustainability Carbon Certification(ISCC) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and ISCC Europe Union (EU) certification. READ MORE

Excerpt from KPI Pertimina: PT Kilang Pertamina Internasional (KPI) continues to solidify its steps to become a leader in the transition to the use of environmentally friendly fuel Sustainable Aviation Fuel (SAF) at the national and regional levels in Southeast Asia. This is marked by the achievement of ISCC (International Sustainability Carbon Certification) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and Europe Union (EU) certificates to produce SAF from used cooking oil (UCO). With this certification, KPI's SAF meets sustainability requirements and can be accepted and traded according to the regulations of the International Civil Aviation Organization (ICAO) CORSIA (worldwide) and the European Union.

"The TDHT (Treated Distillate Hydro Treating-ed) Unit located at the Cilacap Refinery has successfully achieved ISCC Corsia and EU certification for SAF in early December 2024," said KPI Corporate Secretary, Hermansyah Y Nasroen.

According to Hermansyah, the achievement of this certificate shows international recognition of KPI's ability and capability in producing SAF. Hermansyah explained that the Cilacap Refinery TDHT Unit, in addition to being able to produce Pertamina SAF, this unit can also produce vegetable diesel fuel derived from 100% vegetable raw materials since 2022. The product is known as Pertamina Renewable Diesel (RD) or Hydrotreated Vegetable Oil (HVO) which has also been ISCC certified.

According to Hermansyah, KPI also continues to innovate to produce Pertamina SAF through the USAF Project (UCO to SAF) which was launched in 2024.

"KPI was previously able to produce Pertamina SAF with Refined Bleached Deodorized Palm Kernel Oil (RBDPKO) or palm kernel oil raw materials, and now KPI is ready to take steps by producing the first ISCC-certified Pertamina SAF in Indonesia/Regional with used cooking oil raw materials planned for the first quarter of 2025," said Hermansyah.

SAF produced using a mixture of used cooking oil raw materials has the advantage of lower carbon emissions of around >90% compared to aviation fuel made from 100% petroleum. In addition, the absorption of used cooking oil for use as a mixture of raw materials for making aviation fuel can contribute to reducing used cooking oil waste that can potentially pollute the environment.

Furthermore, Hermansyah said, in preparation for the production of SAF from used cooking oil, it is scheduled that in January 2025 the catalyst will be replaced which is capable of processing used cooking oil into SAF at the Cilacap Refinery.

"The catalyst that will be used is the result of the development of Pertamina's Technology and Innovation in collaboration with experts and engineers of PT Kilang Pertamina Internasional. This catalyst is produced at a domestic catalyst factory facility. This shows the mastery of advanced technology by Indonesian engineers," concluded Hermansyah. READ MORE