Council Supports Indonesia’s Decarbonization Efforts With New Study On Ethanol Emissions Reduction Potential

A report commissioned by the U.S. Grains Council (USGC) outlining the decarbonization potential of ethanol in Indonesia was recently presented at a national energy event organized by the Indonesian Ministry of Energy and Mineral Resources. The report, GHG Reduction Assessment of Bioethanol for Indonesia, quantifies the greenhouse gas (GHG) reduction of various blends of ethanol and the corresponding contribution to help achieve Indonesia’s GHG reduction goals for the energy and transport sectors.

The Directorate General of Renewable Energy and Energy Conservation (EBTKE) of Indonesia held the 11th Indonesia EBTKE Conex 2023 event (Conex) in Jakarta, Indonesia. The event, themed “From Commitment to Action: Safeguarding Energy Transition Towards Indonesia Net Zero Emissions 2060,” provided a platform to showcase clean energy technology initiatives and facilitate business activity between energy stakeholders in the country.

The Council sponsored a breakout session focused on bioenergy and waste-to-energy policy and industry trends. During the session, findings from the report were presented by report author and engineer Anna Elaine D. Matanguihan, affiliate associate professor at the University of the Philippines Los Baños (UPLB), to a diverse audience of Indonesian regulators, policymakers and industry stakeholders. The Council partnered with UPLB, home to the Interdisciplinary Life Cycle Assessment Laboratory, to produce the report, the first of its kind for the Indonesian ethanol industry.

The report found that an E10 blend would contribute more than four percent GHG reduction, translating to one-third of Indonesia’s emission goals for the energy sector by 2030.

“As Indonesia take steps toward its net zero goals, it is crucial to consider all decarbonization strategies, especially for its transport sector which is expected to contribute 27 percent of its GHG emissions in 2030,” said Aaron Goh, USGC regional ethanol consultant for Southeast Asia and Oceania. “Along with other green mobility solutions, ethanol can play an important role to decarbonize the transport sector and our participation at Conex 2023 helped reinforce this message.”

Indonesia’s gasoline demand, at nearly 10 billion gallons per year, is expected to hit record highs this year as its post-pandemic economy continues to recover. Indonesia’s gasoline imports of 5.8 billion gallons in 2022 surpassed pre-pandemic levels, and imports are forecast to increase up to 6.1 billion gallons in 2023.