Steel Industry Urged to Use Biofuel

Rabu, 13 Februari 2013 | 10:25

The Ministry of Energy and Mineral Resources (MEMR) will require iron and steel industry to utilize biofuel to conserve the use of fuel oil (BBM) in the production process.Bioenergy Director of the Ministry of Energy and Mineral Resources Dadang Kusniadi said the iron and steel industry consumes as much as 2 million liters of fuel. Therefore there should be a policy that could force the industry to curb the use of fuel without affecting the benefits.

"The use of fuel for the iron and steel industry is currently 2 million kiloliters. If 40 big companies use biofuel, we may save at least 100 thousand kiloliters," he said in Jakarta on Monday (2/11).

Dadan said for now the government will not directly ask the company to use 100% biofuel. However, the Government will force companies to use biofuel gradually by mixing biofuel and fuel.

In 2013, the government targets there will be 1.5 million kiloliters of biodiesel to be mixed with the fuel. The amount is higher than blended biofuel-fuel in 2012 which was 700 thousand kiloliters.

According to him, the Ministry of Energy and Mineral Resources is still talking about the mandatory use of biofuel for industries.

"We will be meeting with the Association to find out the system. For mining companies, the implementation has been mandated in March and July 2012, hopefully for the iron and steel industry, it can be realized before March 2013," he explained.

Economic Calculation

Rida Mulyana, General Director of New Renewable Energy and Energy Conservation (EBTKE) of MEMR said the difficulties faced by the Government in issuing a new policy is in a matter of economic calculation of the industry players.

 “Of course, the new policy will raise confrontation as employers certainly will calculate whether their benefits would reduce if implementing the new policy. But one for sure, we will not lead companies to bankruptcy.”

Currently, Government has been enacting Minister of Energy and Mineral Resources Decree No. 32/2008 regarding mandatory target of biofuel consumption for industry transportation and power generator sectors.

The mandatory use of biofuel itself has been running well in the transport sector by mixing biodiesel into the subsidized diesel by the composition of 7.5% -92.5%.

According to Rida, Government will evaluate and monitor the utilization of biofuel in iron and steel industry. Therefore, Government can ensure whether the implementation of Ministry-level Decree goes according to plan.

The industry players are also asked to no longer worry about the quality of biofuel made from local raw materials, seeing the establishment of Indonesian National Standard (SNI) for each biofuel product produced by the manufacturer.

Biodiesel actually has better quality for industrial machinery as compared to solar, claimed Secretary of Bioenergy Association of Indonesia (IKABI) Soni Solista Wirawan. Moreover, biofuel selling price is relatively competitive with the price of diesel.

“The industry players should not worry about biofuel supply as it is produced by materials which are abundant in the Country.” (t03/t05/aph/tw)

by Lili Sunardi, Hadijah Alaydrus, Reviana Rahmania Surya