Biodiesel vs HVO vs Sustainable Aviation Fuel: What Is the Difference?

The vocabulary of biofuels is getting more varied: biodiesel, green diesel, HVO, renewable diesel, bioavtur, SAF. All can be made from palm oil, but their processes and characteristics differ. Understanding the differences helps in reading the direction of Indonesia's transport decarbonisation. As of October 2026, FAME biodiesel at B50 is the only one of the three produced and mandated at national scale.

Biodiesel (FAME): today's workhorse

The biodiesel blended into B40 and B50 is FAME, the product of transesterification of vegetable oil with methanol. The process is relatively simple and the technology mature, so dozens of companies in Indonesia can produce it at scale. Because its molecules still contain oxygen (an ester), FAME behaves differently from fossil diesel, which is why blend rates are raised in steps and accompanied by strict quality standards.

HVO / green diesel: "diesel" from vegetable oil

HVO (hydrotreated vegetable oil), also called renewable diesel or green diesel, is made differently: vegetable oil is reacted with high-pressure hydrogen over a catalyst (hydrogenation and hydrocracking). The oxygen is removed, leaving hydrocarbon chains that are chemically very similar to fossil diesel.

• Advantages: it is a drop-in fuel, usable at up to 100% without engine modification, stable in storage, and has a high cetane number.
• Challenges: it needs a dedicated refinery, hydrogen, and far greater investment than a FAME plant.

In Indonesia, state energy company Pertamina is developing HVO through green refineries in Cilacap and Dumai, with a product marketed as Pertamina Renewable Diesel made from refined palm oil (RBDPO).

Bioavtur / SAF: greening aviation

Sustainable aviation fuel (SAF, locally "bioavtur") is jet fuel from renewable sources. Pertamina has developed Bioavtur J2.4 at its Cilacap refinery. It contains 2.4% renewable content from refined palm kernel oil (RBDPKO). The fuel has passed ground tests and flight tests, including a test flight of a Garuda Indonesia aircraft with CFM56-7B engines from Soekarno-Hatta Airport on 4 October 2023. Pertamina is also preparing to use used cooking oil (UCO) as a feedstock for SAF and HVO at its next refinery developments.

Quick comparison

Aspect	Biodiesel (FAME)	HVO / green diesel	Bioavtur / SAF
Process	Transesterification with methanol	Hydroprocessing with hydrogen	Hydroprocessing + fractionation to jet fuel specification
Chemistry	Methyl esters (contain oxygen)	Hydrocarbons (paraffins)	Hydrocarbons equivalent to jet fuel
Use	Blended with diesel (B40, B50)	Blended or 100%	Blended with fossil jet fuel
Scale in Indonesia	Mass production, national mandate	Early stage, Pertamina refineries	Trials & development

Complementary, not substitutes

FAME remains the backbone because of its scale and cost, while HVO and SAF open the way for sectors that need high-quality drop-in fuel, such as aviation and export markets. On the gasoline side, the government is also promoting bioethanol from sugarcane, maize and cassava. Together the three form a biofuel portfolio on the road to net zero emissions.