21.
08.18
10:10

Processing of palm oil to bio-kerosene in the US and Europe requested

The Indonesian government has submitted a preliminary request for the construction of biofuel plants for two of its US and French companies. The companies want to produce bio-kerosene for aircraft from Boeing and Airbus, said the Minister of Commerce.
This is the latest attempt by the world's largest producer of palm oil to export its tropical oil products. These oils are increasingly unpopular in Europe and the US, because they are not environmentally friendly and compete with domestic agricultural commodities.
Indonesia is home to the world's third largest virgin forests, and the world community is calling for forest deforestation. EU officials voted in June to end the use of palm oil for fuel production by 2030 to reduce greenhouse gas emissions. The US has imposed anti-dumping duties of up to 341% on Indonesian biodiesel since April.
Indonesia's minister of commerce had presented in July in Washington plans for the construction of a plant for the processing of palm oil. The plants are to be built in the USA and the raw materials should all be delivered from Indonesia.The US responded positively and then asked the same request to Airbus.
The Indonesian airline buys its aircraft in the US and Europe. The Commerce Minister had previously threatened that he would no longer buy from Airbus if the EU implemented its plans to restrict palm oil biodiesel. The carrier of the national airline has also stated that it is delaying ordered aircraft deliveries from Airbus and Boeing, allegedly because it needs to improve its financial position.

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