Major palm oil producers Indonesia and Malaysia remain committed to their mandatory biodiesel programs, despite higher commodity prices, to meet green energy targets, officials said Thursday.

Indonesia and Malaysia use palm oil as a blend for biodiesel, with Indonesia since the early 2020s using a mandatory B30 --blend in fossil diesel that contains 30% palm-based fuel.

With the world's highest mandatory blend, Indonesia aims to reduce diesel imports.

Indonesia's palm-based fuel program "will not stop at the B30," economic affairs coordinating minister Airlangga Hartarto said at a virtual industry conference.

He said Indonesia is working to use palm oil in its diesel oil, gasoline and aviation fuels.

Indonesia is currently conducting test flights using aviation fuel mixed with palm oil and conducting various tests to use it to produce other fuels, as well as planning tests with a 40% palm-based biocontent.

"The commitment to use palm as biofuel material will drive Indonesia to achieve energy security and a (renewable) energy mix target of 23% by 2025," Airlangga said.

Currently, renewable energies ?? represent about 11% of Indonesia's energy mix.

Rival Malaysia is also committed to maintaining and expanding its own biodiesel program after pandemic-related delays, its Minister of Plantation and Commodity Industries, Zuraida Kamaruddin, said at the same event.

"Despite the high price of palm oil, the government is committed to maintaining the biodiesel blend ratio and plans to introduce the highest biodiesel blend like the B30 later," she said.

Malaysia's palm oil index has gained about 30% so far this year amid low production from the two major producers, previous restrictions on Indonesia's export and the impacts of the war in Ukraine.

Malaysia plans to implement its national adoption of the B20 palm oil biofuel program by the end of 2022, its palm oil board said in January.

Source: udop