Indonesia's Pertamina launches sales of gasoline with 5% ethanol mix
(Reuters) - Indonesian state-owned energy company Pertamina has launched sales of gasoline containing 5% of bioethanol made from sugar molasses in two cities, as the country aims to expand the availability of renewable fuels.
Pertamina said it has started selling Pertamax Green 95, its 95-octane gasoline mixed with 5% bioethanol, in 15 petrol stations in the capital Jakarta and the city of Surabaya in East Java, the company said in a statement late on Monday.
The 95-octane fuel is one of Pertamina's premium gasoline products, while the majority of Indonesians consume 90-octane gasoline.
Indonesia, the world's biggest palm oil producer, has already implemented a 35% mandatory blend of palm oil in its biodiesel, but has faced delays in implementation of a biofuel mix in gasoline because of a limited supply of ethanol.
"Pertamax Green 95 is a milestone for Pertamina in development and distribution of gasoline biofuel," said Pertamina CEO Nicke Widyawati.
The Indonesian government plans to eventually mandate the bioethanol content for gasoline at 15% and use it nationwide by 2031.
In the first stage of the distribution, demand for the product is expected to reach 90,000 kiloliters per year, which would contain around 5,000 kiloliters of ethanol, according to an estimate by Pertamina Patra Niaga, which operates the company's retail fuel stations.
Pertamina Patra Niaga will continue to monitor the consumption trend of the biofuel to gradually expand its distribution, Pertamina Patra Niaga CEO Riva Siahaan said.
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