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It was 4:42 PM when a loud bang was heard from the biodiesel industrial area in Dumai, Riau. It was no ordinary sound\u2014it was a massive explosion from one of PT Alam Hijau Lestari’s (AHL) B100 storage tanks.<\/span><\/p>\n In the control room, HSE Manager Manda Kusumawardhani had just finished a meeting with the production team when the tank temperature alarm sounded. Within seconds, CCTV showed thick, grayish smoke billowing from the roof of tank number 7.<\/span><\/p>\n Then came a second explosion. The roof of the tank lifted like a lid. Hot biodiesel gushed out. The fire spread rapidly to the adjacent tank. Employees fled the area. Fire sirens blared in unison.<\/span><\/p>\n The explosion turned Dumai’s sky orange, and was one of the biggest industrial accidents in the region in the past five years.<\/span><\/p>\n Biodiesel is known as a cleaner renewable energy.<\/span> Different from ordinary diesel, biodiesel has the following characteristics:<\/span><\/p>\n If not designed to proper API and NFPA standards, biodiesel can be a chemical bomb.<\/span><\/p>\n For companies like AHL and all Danantara companies operating in the renewable energy sector, the following is a critical risk mapping that must be understood:<\/span><\/p>\n Reason:<\/span><\/p>\n This is caused by:<\/span><\/p>\n Tank farm is an area with a risk of domino effect:<\/span> Biodiesel must be heated.<\/span><\/p>\n Risk:<\/span><\/p>\n Spilling biodiesel into drains or rivers can cause:<\/span><\/p>\n Fermentation or oxidation can produce flammable gases in the tank.<\/span><\/p>\n The loading\/unloading area is the point where sparks and fires most frequently occur.<\/span><\/p>\n Includes:<\/span><\/p>\n Sensor error is the most fatal cause of overheating.<\/span><\/p>\n Chapter 4: AHL Losses After Dumai Tank Explosion<\/b><\/p>\n Financial impacts faced by PT AHL:<\/span><\/p>\n Total loss: <\/span>\u00b1 Rp. 71 billion<\/b><\/p>\n Even for large companies, these numbers are devastating.<\/span><\/p>\n Insurance Protection Recommendations for the Biodiesel Industry<\/b><\/p>\n To protect the valuable assets and operations of the biodiesel industry, the following package is a must:<\/span><\/p>\n Protect:<\/span><\/p>\n Mandatory extensions:<\/span><\/p>\n For:<\/span><\/p>\n The most important guarantee that saves cash flow during downtime.<\/span><\/p>\n For claims by the public or third parties.<\/span><\/p>\n Protects from:<\/span><\/p>\n Tank farm structural damage guarantee.<\/span><\/p>\n Because the biodiesel industry is highly dependent on the transportation of raw materials & finished products.<\/span><\/p>\n Chapter 6: Why Quality Insurance is Important for the Biodiesel Industry<\/b><\/p>\n The biodiesel industry has significant risks but is often misunderstood by local insurers.<\/span> Companies must use insurance that is supported by:<\/span><\/p>\n Thus, large claims can be paid in full.<\/span><\/p>\n Why Companies Should Not Manage Insurance Directly<\/b><\/p>\n A classic mistake biodiesel companies make is buying insurance directly without a broker.<\/span><\/p>\n The risks:<\/span><\/p>\nBiodiesel\u2014Environmentally Friendly, But Highly Risky<\/span><\/h3>\n
\n<\/span>However, ironically, the risks of the biodiesel industry are actually very large, especially in the areas of:<\/span><\/p>\n\n
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Key Risk Analysis of the Biodiesel Industry<\/span><\/h3>\n
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\n<\/span>One tank caught fire \u2192 fire spread \u2192 entire area was burnt.<\/span><\/p>\n\n
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\n<\/span>Therefore, the company must be placed with insurers & reinsurers who have the capacity and experience:<\/span><\/p>\n\n
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