Contribution of the Palm Oil Industry in Decarbonization Efforts in the Aviation Sector: A Development Update

Indonesia has a strategic potential to become the leading global producer of Sustainable Aviation Fuel (SAF), given its role as the world's largest palm oil producer. With an annual production of approximately 50 million tons of CPO and millions of tons of by-products and waste, Indonesia's palm oil industry holds abundant raw material reserves for various internationally recognized SAF conversion pathways. There are three main technological pathways suitable for the characteristics of palm oil derivatives:

1. Hydroprocessed Esters and Fatty Acids (HEFA), the most commercially mature pathway, suitable for raw materials such as CPO, PFAD, RBDPKO, POME oil, and UCO.
2. Alcohol-to-Jet (ATJ), utilizing glycerol and palm biomass (such as empty fruit bunches, fronds, and trunks) fermented into bioalcohol.
3. Fischer-Tropsch (FT), converting palm biomass through gasification into syngas, then synthesizing it into high-quality jet fuel.

Data indicates that the total SAF raw material potential from Indonesia's palm oil industry can reach more than 470 million tons per year, including main products, by-products, and waste. Some raw materials like PFAD (20.7 gCO₂e/MJ) and UCO (13.9 gCO₂e/MJ) have been recognized by ICAO as meeting CORSIA standards due to their low emission values. Meanwhile, raw materials like CPO can only be considered sustainable if processed using methane capture technology to reduce emissions. Indonesia has also actively proposed the recognition of POME oil as SAF raw material to ICAO. This process involves cross-ministerial collaboration, engagement of LCA experts, and technical assistance from international partners. This step is crucial for the potential of palm oil waste materials to be globally recognized and to obtain competitive default emission values. With a developed palm oil industry infrastructure, government policy support, and the increasing global demand for SAF, Indonesia has a significant opportunity to lead the palm oil-based sustainable SAF market. Expanding research, accelerating conversion technology development, and strengthening its position in international forums are key to the success of this strategy. Download here