News and Articles

Veriflux, a US renewables traceability platform, and the Indonesian Used Cooking Oil (UCO) Exporters Association, known as Aemji, have entered into a partnership. Their collaboration aims to incorporate tracing technology that might potentially boost the trade of Indonesian UCO to the US.

The UCO collection application of Aemji has been combined with the Veriflux traceability system, which receives funding from the US Environmental Protection Agency (EPA). This integration is expected to enable biofuel producers to demonstrate that the Indonesian feedstocks they utilize can be accurately traced back to their origin. This aligns with the EPA's traceability criteria for the US market.

According to sources, the initial 200-ton cargo of UCO, which is traced by Simijel via the Veriflux network, is slated for export from Indonesia to Houston this week. The partnership was officially declared on 21 September.

From January to July of the current year, Indonesia's exports of UCO to the US reached slightly more than 13,000 tons, a significant jump from almost none in the preceding years. The US has been a preferred destination for UCO from Asia, especially since the close of 2022. This year, the US has imported considerable quantities from China, due to stronger demand and prices compared to Europe. However, several UCO sellers found it challenging to adhere to the EPA's traceability mandates.

Meanwhile, the European Union is anticipated to mandate a comparable end-to-end traceability system once its Union Database is fully operational. Although the database began accepting users in January, it was initially conceived under the Renewable Energy Directive (RED) II of 2021. Yet, a final deadline for its complete rollout is yet to be set.

While digital feedstock traceability might pave the way for an increased market share for Indonesian UCO internationally, Putu Juli Ardika, the Agro Industry director-general, mentioned that the export of UCO is viewed as a "provisional measure" to eliminate it from the food chain. He emphasized that, in the future, the industry ministry advocates for the utilization of Indonesian UCO in local renewable fuel production.

According to the article by Procurement Resource, US platform Veriflux has partnered with the Indonesian Used Cooking Oil (UCO) Exporters Association (Aemji) to increase Indonesian UCO exports to the US using tracing technology. Aemji's mobile app is now integrated with the EPA-funded Veriflux system, enabling biofuel producers to prove the traceability of their Indonesian feedstocks per US regulations. Indonesia is set to ship the first 200t UCO cargo through Veriflux to Houston. Despite a rise in Indonesian UCO exports to the US, EPA's tracing requirements have posed challenges. Although such traceability might boost exports, Indonesia views UCO exports as a temporary measure, focusing on domestic renewable fuel production in the future.