GS Caltex Launches Feasibility Study for Landmark Biofuel Project in Indonesia

GS Caltex, a leading South Korean oil refiner, has initiated a feasibility study for a pioneering biofuel project in Indonesia, marking a strategic step towards reducing greenhouse gas emissions and advancing sustainable energy solutions.

The initiative, announced on Tuesday, is part of a government-supported international greenhouse gas reduction programme. GS Caltex has been selected to explore the development of an evaporative concentration facility designed to extract oil from palm oil mill effluent (POME), a liquid byproduct generated during palm oil production.

The company will undertake a six-month evaluation to assess the technical and environmental viability of the project. Upon completion of the study, GS Caltex will determine the scope and timing of its potential investment. Should the project proceed, it would be the first of its kind in Indonesia to utilise evaporative concentration technology to process palm oil waste.

According to a company representative, this method is considered a more straightforward and potentially more effective alternative to conventional methane capture techniques. By preventing the natural decomposition of POME, the process could deliver significant reductions in methane emissions.

“Evaporative concentration of palm oil mill effluent is considered simpler than existing methane capture methods and can reduce emissions more effectively by preventing decomposition,” a GS Caltex official stated. “Following the feasibility study, we will consider moving forward with the project at palm oil farms in Indonesia.”

GS Caltex also highlighted the growing relevance of biofuels, particularly for sustainable aviation fuel (SAF), which is increasingly in demand. Regulatory bodies in South Korea, the European Union, and the United States are moving toward mandatory blending of bio-based fuels in aviation operations.

In environmental terms, each facility developed under this initiative could potentially offset emissions equivalent to those absorbed annually by approximately 14 million 30-year-old pine trees. This is primarily due to the replacement of traditional practices, where POME is left to decompose in open ponds, releasing substantial volumes of methane — a greenhouse gas with a global warming potential nearly 28 times greater than carbon dioxide over a 100-year period.

The project signals GS Caltex’s continued commitment to sustainable innovation and low-carbon technologies, with the potential to contribute meaningfully to global emission reduction efforts.

-ANN

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