WORKING PAPER 2023-18

© 2023 INTERNATIONAL COUNCIL ON CLEAN TRANSPORTATION

AUGUST 2023

Producing high quality biodiesel

from used cooking oil in Indonesia
Authors: Tenny Kristiana, Adrian O’Connell, and Chelsea Baldino
Keywords: used cooking oil, pre-treatment, transesterification, post-treatment, UCOME

Introduction
In 2008, Indonesia started its mandatory biodiesel program with a 2.5% blending rate.
That rate gradually increased to 20% in 2016 and 35% in 2023 (Direktorat Jenderal
Energi Baru, Terbarukan dan Konservasi Energi [EBTKE], 2019; Kementerian Energi
dan Sumber Daya Mineral [ESDM], 2023). From 2008–2016, the mandatory program
for the transport sector only applied to the public service obligation (PSO). Under the
program, the Government of Indonesia explored several kinds of biodiesel feedstock,
including jatropha, crude palm oil (CPO), and used cooking oil (UCO) (EBTKE, 2019).
In 2015, the government established the Badan Pengelola Dana Perkebunan Kelapa
Sawit (BPDPKS), also known as the Palm Oil Estate Fund (POEF) to manage the
CPO Supporting Fund (CSF). That helped the country more effectively implement its
mandatory biodiesel program by incentivizing CPO biodiesel (BPDPKS, 2018).

Since then, Indonesia has focused more on developing its biodiesel program under
a single feedstock, CPO. Besides biodiesel, CPO is used in various food products in
Indonesia, including cooking oil. The recent domestic cooking oil crisis that brought
drastic prices increases and supply shortages created strong pressure on the biodiesel
program. Some stakeholders, including members of the business community, argue
that the large volume of CPO used in the biodiesel program contributed to distribution
problems that helped, among other factors, to cause the cooking oil crisis (CNBC
Indonesia, 2022). For this reason, policymakers are considering other feedstocks to
produce biodiesel.

Biodiesel, comprised of fatty acid methyl esters (FAME), can be produced from several
oily feedstocks besides CPO, including UCO (Kristiana & Baldino, 2021). Yet UCO is
underutilized as a biodiesel feedstock in Indonesia. For example, a recent ICCT study
found that Indonesia has the potential to collect up to 715 kilotonnes of UCO annually
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(Kristiana et al., 2022). While 651 kilotonnes of UCO biodiesel could potentially be
produced in Indonesia from this volume, only approximately 0.7 kilotonnes is currently communications@theicct.org
produced annually (Kristiana & Baldino, 2021). Because UCO is not currently included
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in Indonesia’s biodiesel program, most UCO collected in the country is exported to
Europe or other parts of Asia (Kristiana et al., 2022).

B100 is pure biodiesel consisting of 100% FAME. The Indonesian National Standard
for B100 is set out in SNI 7182:2015 (Badan Standardisasi Nasional, 2015). Along with
that, Ministry of Energy and Mineral Resources (MEMR) regulations, which include
standards for biodiesel blending, govern Indonesia’s current biodiesel program. In
the B30 program, for example, the EBTKE Directorate General Decree No. 189.K/10/
DJE/2019 specifies the requirements for FAME to be blended into diesel. Producers
who participate in the biodiesel program qualify for government incentives. Every
year, MEMR issues a quota for biodiesel blending and an estimate of the total financial
incentives necessary. The total for incentives is not a fixed number since it is based on
the market prices of palm oil and diesel; at times, high per-liter incentives are needed
while at other times, no incentives are needed (Waseso, 2022).

Currently, UCO biodiesel producers do not participate in the national biodiesel

program. While UCO was included on a limited basis in the program from 2014–2018,
its use ended because of limited feedstock supply and high UCO biodiesel production
costs (EBTKE, 2021). However, apart from the central government’s national biodiesel
program, several cities created local efforts to use UCO in biodiesel. For example,
Bogor city attempted to run a UCO biodiesel program from 2008–2015, but the
program stopped for several reasons, including inconsistent feedstock supply,
inconsistent blending, and the low quality of biodiesel (which appeared to damage city
buses) (Kharina et al., 2018). In one instance, the biodiesel in Bogor’s city’s program did
not meet the national SNI standard mostly because it was not pretreated (Kharina et
al., 2018).

Despite past difficulties, industry analysis and several academic studies show that
biodiesel produced from UCO in Indonesia can meet national standards (GenOil,
personal communication, February 3, 2022; Wicaksono et al. 2019; Zalfiatri et al.,
2019; Efendi et al., 2018). Moreover, several companies in Indonesia are producing
high quality UCO biodiesel. For example, two UCO biodiesel companies in MEMR’s
registry, Alpha Global Cinergy and Bali Hijau Biodiesel, meet the national biodiesel
standard (EBTKE, 2021). And several companies, including Artha Metro Oil, GenOil,
Aqua Danone, Unilever, and Cargill, have produced UCO biodiesel on a limited basis for
their own use or to sell domestically (Kristiana et al., 2022; TNP2K & Traction, 2020). A
community-based company in Kalimantan also produces UCO biodiesel for its own use
(EBTKE, 2021).

The purpose of this study is to describe the processes that could be used in Indonesia
to produce high-quality biodiesel particularly from UCO. We provide detailed
information on production options that could be effectively used in Indonesia,
including pretreatment, transesterification, and post-production purification options.
We also discuss the use of antioxidants to maintain biodiesel quality during storage.
Finally, we compare the costs of producing biodiesel from UCO and CPO. This study
concludes that high quality, cost-competitive UCO biodiesel is technically feasible to
produce in Indonesia if it undergoes proper pre- and post-treatment, particularly if the
Government of Indonesia supports and incentivizes production through appropriate
regulations.

UCO biodiesel production

Figure 1 illustrates the general process to produce biodiesel. However, it is important
to understand UCO’s properties within the context of that general process. UCO
is contaminated by food products and contains water and impurities such as free
fatty acid (FFA) molecules which escape from glycerol (Skelton, 2009; Susilowati
et al., 2019). The amounts of FFA and water in UCO determines which pretreatment,
transesterification, and post-treatment purification processes are needed to produce
high quality biodiesel. Several studies (Aeni, 2020; Efendi et al., 2018; Wicaksono et al.,
2019; Yuarini et al., 2018) have evaluated UCO samples from different sources across
Indonesia (e.g., restaurants, hotels, street food and snack vendors, etc.). They found
that UCO in Indonesia has less than 1% water content and between 1–2% FFA content.

2 ICCT WORKING PAPER 2023-18 | PRODUCING HIGH QUALITY BIODIESEL FROM USED COOKING OIL IN INDONESIA
These levels are considered high and indicate that additional pre- and post-treatment
steps are needed.

Feedstock Methanol &

Catalyst

Pretreatment Transesterification Separation

Soap, water, and

Crude glycerin Crude biodiesel
excess alcohol

Input

Process Glycerin Biodiesel

purification purification
By-product

Desired product
Glycerin Biodiesel

Figure 1. Simplified overview of biodiesel production (Kristiana & Baldino, 2021)

While UCO biodiesel is not widely produced in Indonesia, Europe has a mature UCO
biodiesel industry. Figure 2 illustrates the typical European process for producing
high-quality UCO biodiesel. It involves three steps: pretreatment, transesterification,
and distillation. During pretreatment, heating, filtration, and settlement remove solids
and moisture from UCO. Then crude biodiesel is produced through transesterification
– mixing UCO with a catalyst to remove free fatty acids (FFA). After transesterification,
distillation treats impurities to create high quality UCO biodiesel.

Used Heating, Esterification Distillation Biodiesel

cooking oil filtration and and
settlement Transesterfiication

Figure 2. The typical European process for producing UCO biodiesel

The next sections describe the steps in the typical European process in more detail and
describe several other options that are available in the biodiesel industry. Choosing
the options among this list that best fit specific circumstances could help Indonesian
biodiesel producers utilize UCO to effectively meet national biodiesel standards for
road transport usage.

Pretreatment
Pretreatment produces higher quality biodiesel from UCO by removing solids,
water, and FFA content. Here, we describe various options within five pretreatment
categories: solid removal, FFA pretreatment, laboratory-scale FFA pretreatment,
laboratory-scale moisture/water pretreatment, and degumming.

3 ICCT WORKING PAPER 2023-18 | PRODUCING HIGH QUALITY BIODIESEL FROM USED COOKING OIL IN INDONESIA
1. Solid removal
There are two options to pretreat UCO to remove particulate matter and suspended
solids, like food residues: filtration/settlement and centrifugation.

Filtration/settlement: UCO is heated and passed through sieves. As it settles in a tank,

dirt and water collect at the bottom (O’Connell, 2004). The heat treatment also helps
to reduce moisture content and maintain the initial quality of oil by reducing impurities
(i.e., acid and peroxide) (Gürdil et al., 2020; O’Connell, 2004). This is included in the
typical European process.

Centrifugation: This process treats solid impurities and reduces water content
(Cardenas et al., 2021). It is commonly used in large-scale facilities most often in
Europe and North America for biodiesel derived from vegetable oils (Neuman, 2014).
This process involves comparatively higher capital and operating costs.

2. FFA pretreatment
High FFA content can lead to the formation of soap and water during the biodiesel
production process and can harm vehicle engines (Biofuels International, 2021;
Gnanaprakasam et al., 2013). There are five commercially-available FFA pretreatment
practices: esterification; adsorption; neutralization; distillation/deodorization; and
glycerolysis.

Esterification: In this process, UCO is mixed with enzymes (such as lipases) or, more
commonly, an acid catalyst (Cardenas et al., 2021). FFA and other acid compounds are
converted into esters. Monohydroxylic alcohols are often used because they are more
easily removed and recovered from the UCO. It is possible to obtain different esters
depending on the alcohol used in the esterification process. For example, by using
methanol, this reaction produces UCO FAME (UCOME) (i.e., biodiesel ester). There are
a few drawbacks to this method, such as low catalyst recovery, the catalyst corroding
equipment, and comparatively high processing costs. This is included in the typical
European process.

Adsorption: This pretreatment method has economic advantages due to its low cost
and flexibility of operation. It removes FFA, moisture, and other polar compounds like
peroxides (another impurity) (Foo et al., 2022). In this process, UCO is put in contact
with an active material that selectively retains some components of the liquid mixture
including polar compounds (Cardenas et al., 2021; Ju et al., 2019). The most common
adsorbent materials are activated carbon, ion exchange resin, clays, silicates, and
aluminum silicates. Zeolite, magnesol, silica gel, magnesium oxide, and aluminum
hydroxide are also used though less commonly (Schneider et al., 2017; Shahdan &
Hirzin, 2021). Commonly used adsorbents are costly, and researchers are searching for
alternatives, such as agricultural residues like rice husk, coconut husk, and sugarcane
bagasse. Schneider et al. (2017) found that rice husk removed acidity in UCO as
effectively as activated carbon. Besides removing FFA, applying adsorption to UCO
by using activated carbon also can reduce the value of other acids and address the
polymer content, another impurity in UCO (Phillips, 2019). However, adsorption leaves a
significant fraction of the oil embedded in the solid material, which results in UCO loss.
While adsorption is well-developed on the industrial scale to refine edible oils, current
industrial processes are ill-suited for UCO.

Neutralization: This method blends UCO with alkaline solutions (e.g., potassium
hydroxide or sodium hydroxide), which turns FFA into a solid soap (Cardenas et al.,
2021; Foo et al., 2022). The soaps, insoluble in the oil, are removed by first washing the
mixture with a water spray and then with decantation or centrifugation. Neutralization
is commonly used in the edible oil industry, where it is known as chemical refining
(Cardenas et al., 2021). This treatment is not recommended for UCO, especially for UCO

4 ICCT WORKING PAPER 2023-18 | PRODUCING HIGH QUALITY BIODIESEL FROM USED COOKING OIL IN INDONESIA
with an FFA content greater than 5% by weight, due to the amount of alkaline solution
that would be required. Moreover, this method generates a large amount of waste.

Distillation/deodorization: In the vegetable oils industry, vacuum and stripping

distillation is commonly used to remove FFA (typically when it makes up less than 10%
of the oil). In industrial practice, distillation is combined with adsorption to remove
polar compounds (Foo et al., 2022). Cardenas et al. (2021) argue that compared to
neutralization and esterification, the distillation method generates a lower amount of
waste, minor oil losses, and FFA that is high enough quality to be used to produce
other products. This method also could help remove other impurities (Foo et al., 2022).
However, compared to other pretreatment options, distillation carries high capital
and operating costs since it requires vacuum equipment, large energy consumption,
and high temperatures. While not included in the typical European process, most
UCO in Indonesia could be pretreated with this process (since it is used in Indonesia’s
vegetable oil industry).

Glycerolysis: In this process, glycerol, a by-product of biodiesel production, is added

to UCO with a high amount of FFA (usually higher than 5%). Under high temperatures,
the glycerol recombines with FFA to form glycerides (Kombe et al., 2013; Mamtani et
al., 2021). A study by Kombe et al. (2013) noted that this process could be done by
adding metallic catalysts, such as zinc chloride and zinc dust, or without a catalyst.
Advantages of this process include that glycerol is readily available, no alcohol is
needed (unlike esterification), and water from the reaction is vaporized immediately
(Kombe et al., 2013; Mamtani et al., 2021). This method has been demonstrated at
an industrial scale; JatroDiesel, a company based in the United States, sells units for
glycerolysis of feedstock with different levels of FFA (Voegele, 2012; Tafesh & Basheer,
2013). However, this method is it requires a high temperature with a slow reaction rate.

3. Laboratory-scale FFA pretreatment

UCO is increasingly used as a biodiesel feedstock. Accordingly, new pretreatment
processes are under development. There are four laboratory-scale pretreatment
options of note: solvent extraction; membrane technology; column chromatography;
and biotreatment.

Solvent extraction: In this process, a solvent (i.e., a separation agent) removes

impurities from UCO (Cardenas et al., 2021). The selection of the solvent determines
the operating conditions for this process, such as boiling temperature, separation
effectiveness, and techno-economic feasibility. While this method is promising for the
removal of FFA in edible oil refining, its application for UCO remains limited. Further
testing and study continues. For example, Rincon et al. (2021) tested this process on
UCO using methanol, ethanol, and isopropanol as solvents. Moreover, a study by Foo et
al. (2022) noted that this process combined with water or aqueous acid solutions can
remove moisture content and impurities from UCO.

Membrane technology: In this process, a permeable membrane separates impurities

under a pressure gradient (Cardenas et al., 2021). This method has several advantages,
including comparatively higher UCO yields and low energy consumption. It could
be applied to any quality of oil and does not require additional chemical substances
(Cardenas et al., 2021; Foo et al., 2022). However, the price of membranes means this
process costs more than other pretreatment options. This process also has short reuse
cycles which means it generates a large amount of solid waste. This process is currently
limited to the laboratory and pilot scale.

Column chromatography: Lee et al. (2002) conducted a laboratory test to treat

restaurant UCO with 10–15% FFA content. The process they used – column
chromatography – mixed UCO with hexane, filtered it, and passed it through a
column. After the hexane evaporates, the FFA-free UCO can be recovered. Next, the

5 ICCT WORKING PAPER 2023-18 | PRODUCING HIGH QUALITY BIODIESEL FROM USED COOKING OIL IN INDONESIA
UCO enters the base-catalyzed process called alcoholysis, using an alcohol such as
methanol. This method has advantages, such as comparatively higher feedstock yields
and the ability to eliminate moisture content.

Biotreatment: Preliminary laboratory test results show that microorganisms can

consume some (but not all) types of FFA (Cardenas et al., 2021). Short-chain fatty
acids inhibit the microorganisms, for example. Biotreatment is mainly used to obtain
value-added products like lipids. The development of this method to remove FFA
in UCO faces several challenges, such as high costs and the need to remove the
microorganisms used.

4. Laboratory-scale moisture/water pretreatment

Moisture/water pretreatment can be used when producers want to reduce water
content to below 0.5% to obtain a 90% biodiesel yield (Gnanaprakasam et al., 2013).
Water content in UCO could accelerate the hydrolysis of glycerides into FFA, which is
undesirable, and simultaneously inhibit ester formation due to the catalyst’s sensitivity
to water (Foo et al., 2022). In general, the pretreatment options described earlier
remove water (along with other impurities). Three additional moisture pretreatment
methods (the use of microwaves, chemicals/desiccants, and pretreatment modules) are
described here.

Microwave: If heating during solid removal, which is part of the typical European
process, is considered energy-intensive, an alternative is to use a microwave to
evaporate water (Cardenas et al., 2021). The heating temperature of microwaves is
lower compared to temperatures during solid removal and achieves high separation
efficiency. However, this method carries the risk of overheating which can destroy
organic molecules.

Chemical and desiccants: Moisture can be removed using chemicals and desiccants
such as silica gel, magnesium sulfate, or sodium sulfate (Cardenas et al., 2021;
Palanisamy et al., 2013). However, this method increases production costs due to the
regeneration limit of the chemicals used, is energy-intensive, and generates waste
(Cardenas et al., 2021; Palanisamy et al., 2013).

Pretreatment module: The moisture content in UCO can also be removed with a
“pretreatment module” as described in a laboratory trial conducted by Palanisamy
et al. (2013). The module is equipped with a vacuum pump and condenser system to
reduce moisture vapor temperature. The module reduces UCO’s moisture content
and operates at 100 degrees Celsius. This method consumes half the energy of the
conventional heating method.

5. Degumming
Besides FFA, moisture, and solid impurities in UCO, other impurities such as polymers
and phospholipids should be removed during biodiesel processing. The presence
of phospholipids in feedstocks can complicate the separation of products and
create problems for storage by forming deposits or gums (Tafesh & Basheer, 2013).
Furthermore, phospholipids could block catalysts during the FAME production process
(Kanakraj and Dixit, 2026). Several degumming methods to remove phospholipids are
used in the vegetable oil refining industry: membranes, enzymes, water degumming,
and total degumming. Water degumming, for example, works typically by hydrating
feedstock with water to remove phospholipids (Rincon et al., 2021).

Transesterification
After pretreatment, UCO undergoes transesterification, where it reacts with methanol
or another alcohol and a catalyst to produce FAME and by-products. The use of
a catalyst speeds the process. Non-catalytic transesterification requires higher

6 ICCT WORKING PAPER 2023-18 | PRODUCING HIGH QUALITY BIODIESEL FROM USED COOKING OIL IN INDONESIA
temperatures and pressure. Methanol is used more often than other alcohol types due
to its quick reaction with triglycerides and ability to dissolve with a catalyst.

An alkaline-catalyzed transesterification process is part of the typical European

process and is combined with esterification pretreatment (see Figure 2). The
combination of these two processes is common in the biodiesel industry particularly
for UCO as feedstock; this is not applicable to refined vegetable oil which does not
require esterification treatment. The process is an effective way to convert triglycerides
into esters when the FFA level is less than 1%, which is possible for Indonesian UCO.
As explained earlier, the esterification of FFA present in UCO is carried out using an
acid catalyst to decrease the FFA level to less than 1%, which is important because the
alkaline catalyst is sensitive to FFA (San, 2017; Banerjee & Chakraborty, 2009).

In general, the alkaline-based production process requires moderate temperature

and low pressures to operate, and it achieves a high conversion efficiency in less time
compared to other processes. The major drawback of this process is the formation of
soap which can reduce the conversion rate. Alkali catalysts used in transesterification
are sodium methoxide (CH3ONa), sodium hydroxide (NaOH), potassium hydroxide
(KOH), or potassium methoxide (CH3KO). Among those, biodiesel producers commonly
use KOH for producing biodiesel from UCO. Studies also find that KOH is the most
effective catalyst for transesterification of UCO.

Purification and post-treatment

Crude biodiesel usually still contains impurities, such as methanol, FFA, catalyst, water,
and glycerides (especially when producers use lower quality feedstock, like UCO). The
impurities in biodiesel need to be removed to prevent negative impacts on the diesel
with which it is blended and on engines (Berrios et al., 2011). This section explains in
more detail five purification or post-treatment methods that could be used to produce
high-quality UCO biodiesel: distillation; wet washing; dry washing; membrane reactor;
and liquid-liquid extraction.

Distillation: To obtain a final UCO biodiesel product that meets specifications like
the Indonesian biodiesel standard, distillation is recommended. There are several
distillation techniques, such as conventional distillation (ordinary, vacuum, and steam
distillation), azeotropic distillation, reactive distillation, and molecular distillation.
Several studies show conventional and molecular distillation provide higher quality
FAME (Torres et al., 2017; Xie et al., 2019; Wang et al., 2010). However, this process
could impact the oxidative properties in biodiesel and needs high temperatures which
raises operating costs compared to other purification techniques. This process is
commercially available. It is included in the typical European process.

Wet washing: This process washes crude biodiesel with warm acidic water (Demirbas,
2008). It is adopted in conventional processes using alkaline catalysts, especially
in large-scale production. This method efficiently removes a higher content of
contaminants, but requires high equipment and energy costs since it involves multiple
steps such as water treatment, methanol distillation, and glycerol drying (Dimian & Kiss,
2019).

Dry washing (ion exchange or use adsorbent): This process usually involves washing
crude biodiesel with an ion exchange resin or magnesium silicate powder (Skelton in
Waldron, 2009). When an ion exchange resin is used, the UCO biodiesel is fed through
a resin column at room temperature. The biodiesel is then washed with methanol. The
resin used in the process can be regenerated and reused (Berrios et al., 2011). This
approach is popular among small producers, as it avoids wastewater treatment and
is suitable to reduce glycerol from crude FAME (Dimian & Kiss, 2019). This method
is used on the commercial scale in Indonesia; GenOil, a UCO biodiesel producers,
uses it to purify FAME (GenOil, personal communication, February 3, 2022). One

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drawback of this method is the high cost of resin (GenOil, personal communication,
February 3, 2022). The use of magnesium silicate powder, an adsorbent, is promoted
on the industrial scale in the UK and the US (Skelton in Waldron, 2009). However, this
generates solid waste.

Membrane reactor: Membrane reactors are commonly used in the vegetable oil
biodiesel industry for purification utilizing the immiscibility of methanol and vegetable
oils (Talebian-Kiakalaieh et al., 2013). There are two types of membranes, organic and
inorganic. This process offers lower production costs due to the integrated reaction
and separation step and relatively easy waste removal. However, this method requires
methanol purification and the need to clean up the membrane.

Liquid-liquid extraction: At the laboratory-scale, liquid-liquid extractions wash

biodiesel with distilled water, tap water, or glycerol at room temperature, then left to
settle, and finally separated by centrifugation (Berrios et al., 2011). Testing shows this
method could remove all impurities. Residual glycerol could also be a co-product of
this method.

Summary of pre- and post-treatment options

UCO and CPO biodiesel production process differ most in the pre- and post-treatment
steps. Table 1 summarizes the pre- and post-treatment options for UCO biodiesel.
Processes included in the typical European process are highlighted.

8 ICCT WORKING PAPER 2023-18 | PRODUCING HIGH QUALITY BIODIESEL FROM USED COOKING OIL IN INDONESIA
Table 1. Pre- and post-treatment options for UCO biodiesel.

Treatment Technology Level Advantages Disadvantages

Requires high temperature (i.e., is energy-

Filtration and Potential to reduce solid waste disposal intensive); needs follow-up pretreatment
Mature
settlement and enable oil recovery in a grease trap to remove other impurities, such as free
Solid removal fatty acids

High capital and operating costs; usually

Potential to reduce solid waste disposal
Centrifugation Mature combined with another pretreatment
and enable oil recovery in a grease trap
method

Applicable to any quality of oil; high

efficiency; can be combined with High processing costs; generates
Esterification Mature transesterification; produces valuable by- wastewater; acid catalysts cause corrosion
product esters to use in the production of in equipment; low catalyst recovery
other chemicals

Low energy consumption; applicable

Generate solid waste; consume a high
to any quality of oil; low generation of
Adsorption Mature amount of adsorbent; low retention
wastewater; simultaneous removal of other
percentage
impurities

High loss of oil; generate soaps and

Applicable to any quality of oil with FFA
Neutralization Mature wastewater as by-products; consume large
below 5%;
volume of water for washing process

Simple and common in Indonesia; low

High capital and operating costs; high
water consumption; recovered FFA
Distillation Mature energy consumption; vacuum system can
are high enough quality to use in other
generate high wastewater
products; minor oil losses
Free fatty
Designed to treat high FFA content
acid (FFA)
(above 5%); catalyst optional; utilizing
pretreatment
glycerol, a by-product of biodiesel, which
Require high temperature; slow reaction
Glycerolysis Mature lowers the biodiesel production cost; no
rate
alcohol needed in the process; capability
of converting FFA back to the glyceride
molecule

Remove FFA together with other

Solvent extraction Lab-scale Need to be careful when selecting solvent
impurities

Applicable to any quality of oil; low energy

Membrane consumption; high efficiency; no additional Generate large amount of solid waste; high
Lab/pilot scale
technology chemical substances needed; relatively costs of membrane
high yield of UCO

Able to treat UCO with high FFA content

Column
Lab-scale (10–15%); increase feedstock conversion Long and slow process
chromatography
rate; simultaneous removal of moisture

High production costs; inefficient

Biotreatment Lab-scale Produce value-added products
separation; inhibition sometimes occurs

Low energy consumption for heating; Risk of overheating which can destroy
Microwave Lab-scale
quick process; high separation efficiency some organic molecules

Increase production cost due to limited

Chemicals/
Moisture Lab-scale Desiccant recovery chemical regeneration; energy-intensive;
desiccants
pretreatment generates waste

Intermediate temperature requirement and

Pretreatment
Lab-scale energy consumption is lower compared to
module
conventional heating method

Membranes,
enzymes, water Removes several impurities; prevent the Requires high temperature and high water
Degumming Mature
degumming, total formation of gum deposits loading to get better extraction
degumming

Impacts oxidative properties in biodiesel;

Produces high quality FAME; has plenty of
Distillation Mature high cost technology; requires high
options for distillation
temperatures

Efficient treatment for a high content of

impurities; suitable as continuity of alkaline Generates large volumes of wastewater;
Mature
Wet washing transesterification process; lower cost glycerol reduction is not as effective as dry
compared to other methods washing

Purification &
post-treatment Resin can remove efficiently soap, glycerol High cost of resin; generate solid waste;
Dry washing Mature
and catalyst; resin can be regenerated and cannot remove methanol
reused; little wastewater generated

Relatively low cost due to integrated

Membrane must be cleaned; methanol
Membrane reactor Mature process; no waste is generated; soap and
must be purified to reuse it
glycerol are easily removed

Liquid-liquid Process is carried out under room

Lab-scale
extraction temperature; able to remove all impurities

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Biodiesel storage
The next common practice in the biodiesel industry is storage. During storage,
biodiesel must remain stable to avoid the formation of gums and sediment which
could clog filters and form deposits on fueling components, such as in fuel pumps and
injectors. Furthermore, oxidative degradation occurs during long-term storage, which
also affects biodiesel quality (Dunn, 2008). Dunn (2008) noted that antioxidants are a
promising low-cost method for increasing biodiesel resistance to oxidation.

Biodiesel has varying levels of oxidative stability due to differences in natural

antioxidants, which impacts the kinds of antioxidants that should be added (Tang et al.,
2008). There are two different sources of antioxidants, natural and synthetic. Natural
antioxidants include tocopherol (a compound in vegetable oils) and vitamin E. Several
studies have found that synthetic antioxidants (which include pyrogallol, gallic acid,
and propyl gallate) are more effective than natural antioxidants (Dunn, 2008; Jain &
Sharma, 2010; Sarin et al., 2010). Synthetics are generally preferred by producers due
to their effectiveness in treating distilled and undistilled biodiesel.

Comparison of UCO and CPO as biodiesel feedstock

This study described several pre- and post-treatment options for producing UCO
biodiesel. The impurities in UCO require extensive treatment; some treatment options
are costlier than others. In this section, we offer examples of UCO biodiesel production
costs using different treatment options.

A study by Sutanto et al. (2021) modeled a new UCO biodiesel plant with two
pretreatment steps, esterification and neutralization. With an annual plant capacity
of around 50,000 tons and those two pretreatment steps, the net UCO biodiesel cost
would be IDR 10,152/liter.

Separately from that study, a UCO biodiesel producer in Indonesia, GenOil, uses
adsorption as a pretreatment method and ion-exchange resin for post-treatment
(GenOil, personal communication, February 3, 2022). As mentioned earlier, resin costs
are high and raise production costs. GenOil has shared that their total production cost
is IDR 8,675/liter (GenOil, personal communication, February 3, 2022).

A slightly cheaper UCO biodiesel production cost is taken from a study by Ula and
Kurniadi (2017) which used a pre-heating method to decrease moisture content before
transesterification. With only one pretreatment method, production costs decrease to
IDR 7,214/liter.

However, regardless of pre- and post-production options, the cost of feedstock most
influences production costs. For example, GenOil’s feedstock cost is IDR 6,000, which
is 69% of its total production cost (GenOil, personal communication, February 3, 2022).
In the study by Ula and Kurniadi (2017), the feedstock cost is IDR 3,000/liter or 42% of
total production costs.

CPO is the feedstock for the biodiesel program in Indonesia. While CPO is considered
higher quality than UCO, but it is important to note that palm oil fresh fruit bunch (FFB)
undergoes five extraction processes before becoming CPO (Jilan, 2021):

1. FFB loading to ramp station

2. FFB sterilization
3. Threshing
4. Digesting and pressing
5. Clarification

10 ICCT WORKING PAPER 2023-18 | PRODUCING HIGH QUALITY BIODIESEL FROM USED COOKING OIL IN INDONESIA
CPO and other vegetable oils have FFA and water content, just like UCO. Studies
found that CPO produced in Indonesia has FFA content above 3% and water content
below 1% (Ihsan & Fajri, 2019; Yuniva, 2010). Since CPO carries impurities, it needs
pretreatment such as degumming, bleaching, neutralization, or deodorizing before
transesterification.

Jilan (2021) provides the cost of the different processes in CPO production for a
state-owned enterprise, PTPN III. We use these cost components to calculate the base
production cost (without profit margin) to derive a CPO production cost of IDR 9,349/
kg. The price of CPO represents most of this cost. However, Jilan (2021) used palm oil
prices from October 2020, which falls at the higher range of the past five years of CPO
prices (Palm Oil Analytics, 2023).

CPO production costs, which we consider as feedstock costs, make up a large share
of biodiesel production costs. In Indonesia’s biodiesel program, the government sets a
fixed CPO biodiesel production cost, excluding feedstock costs, at USD 85 per metric
ton (1,058 IDR/liter using the 2021 USD to IDR average exchange rate). Biodiesel
producers must pay any production costs higher than USD 85, as the government only
gives incentives for the final price gap between biodiesel and diesel. Even with this
fixed price, the average CPO biodiesel total production cost in 2022 was 12,495 IDR/
liter, which is higher than UCO biodiesel costs from the sources examined for this study
(GenOil, 2022; Sutanto et al., 2021; Ula & Kurniadi, 2017).

Again, in biodiesel production, feedstock costs comprise a large percentage of total

production costs. Based on the above comparison, in Indonesia, the production
cost of UCO biodiesel is cheaper than CPO biodiesel. However, since the pre- and
post-treatment options used to derive UCO biodiesel production costs differ from the
typical European process, production cost will change if Indonesian producers were
to adopt processes typically used in Europe to produce higher-quality UCO biodiesel.
The adoption of such processes would require investment in pre- and post-treatment
equipment. Securing UCO at lower prices would help producers to offset higher capital
expenditures or upfront investments and mitigate higher production costs.

Indonesia has abundant UCO available to be collected and processed into biodiesel.
The country has an opportunity to produce high-quality UCO biodiesel at a competitive
price. In Europe, UCO is in high demand; the feedstock price is high. This means
producing UCO biodiesel there is more expensive than producing vegetable oil-based
biodiesel. Currently, UCO collected in Indonesia is mostly exported to Europe and
other Asian countries. Indonesia could use UCO as feedstock for its domestic biodiesel
program, which would help defuse the food versus fuel debate and avoid a cooking
oil crisis. First, the Indonesian government could consider incorporating UCO into the
biodiesel program. By listing UCO as alternative feedstock in the biodiesel program,
UCO biodiesel quality would be regulated to meet the national standard, UCO biodiesel
would get incentives, and investors and biodiesel producers could invest more
confidently in UCO biodiesel production.

Conclusions
The current biodiesel program in Indonesia uses a single feedstock, CPO, despite the
abundant availability and low price of UCO in Indonesia. Our last study found that
Indonesia could collect up to 715 kilotonnes of UCO which could be used to produce
651 kilotonnes of biodiesel (Kristiana & Baldino, 2021). However, UCO is mostly
exported to countries in Europe and Asia instead of being used domestically. UCO
could be an alternative feedstock in Indonesia’s biodiesel program.

Both UCO and CPO need pretreatment before transesterification. With the right
pre- and post-treatment methods, UCO biodiesel could be as high quality as biodiesel

11 ICCT WORKING PAPER 2023-18 | PRODUCING HIGH QUALITY BIODIESEL FROM USED COOKING OIL IN INDONESIA
from vegetable oils. Several pre- and post-treatment methods use technologies similar
to those used to produce vegetable oil biodiesel. Previous attempts to use UCO as
feedstock for biodiesel failed due to inadequate pre- or post-treatment. However, given
the many pre- and post-treatment options available, UCO biodiesel producers can
avoid past failures to successfully develop their industry.

In Europe, producers typically combine esterification and transesterification with post-

production distillation. Indonesian producers could consider adopting that approach
to produce high-quality UCO biodiesel to meet the Indonesian standard. Meanwhile, in
Indonesia, companies such as GenOil and Bali Hijau have used other pretreatment and
purification methods to produce biodiesel from UCO.

The literature suggests that currently, it costs less to produce UCO biodiesel in
Indonesia than CPO biodiesel. Even with costlier pre- and post-treatment equipment,
depending on the cost of the UCO, Indonesian producers could still produce cost-
competitive UCO biodiesel.

The Government of Indonesia (specifically MEMR) should consider listing UCO as an

alternative feedstock in the current biodiesel program. UCO biodiesel could then be
regulated to meet the national biodiesel standard and it could qualify for the biodiesel
incentive from the Ministry of Finance under the POEF. By issuing a new regulation or
policy to incorporate UCO into the biodiesel program, UCO biodiesel quality can be
ensured under SNI and MEMR regulations and further fiscal or non-fiscal incentives
could be given to support UCO biodiesel development and ensure UCO is cost-
competitive with CPO biodiesel.

12 ICCT WORKING PAPER 2023-18 | PRODUCING HIGH QUALITY BIODIESEL FROM USED COOKING OIL IN INDONESIA
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