Driving the Energy Transition Through Renewable Energy

What is Biodiesel?

Biodiesel is an alternative fuel derived from renewable plant-based sources such as Crude Palm Oil (CPO), soybean oil, or used cooking oil that has been chemically processed into a compound called Fatty Acid Methyl Ester (FAME). In Indonesia, biodiesel is primarily produced from CPO, as palm oil is the country’s largest and most efficient agricultural commodity in terms of oil yield. Biodiesel is blended with diesel to produce various fuel grades such as B35 and B40, which are widely used in transportation, industrial operations, mining, and power generation. For example, B35 refers to a blend containing 35% biodiesel and 65% fossil diesel. 

How Biodiesel Is Made

Biodiesel is produced through a chemical process called Transesterification. In this process, vegetable oil (such as Crude Palm Oil) is reacted with methanol and a basic catalyst (such as sodium Hydroxide or NaOH). The reaction yields Methyl Ester (biodiesel) and Glycerol as a byproduct. After filtration and purification, pure FAME (B100) is obtained, which can then be blended with fossil diesel to produce fuel products such as B30 to B40.