JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil manufacturer, is evaluating fuel with a view to increasing to 40% from 35% the share of palm-oil mixed into biodiesel next year, the energy ministry stated.
If carried out, the B40 required could increase biodiesel consumption to as much as 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.
"We hope the trials might be completed in December, so that full implementation of B40 might be brought out in 2025," energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to satisfy B40 demand, with set up capacity anticipated to rise to 20 million KL each year next year from 18 million KL now.
"However we will require more raw products to meet B40 demand," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel market would need 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the 11 million heaps required this year, he added.
Indonesia's biggest palm oil association GAPKI said a decline in exports indicated there would suffice basic materials to supply the B40 required for now.
But the industry would need to examine "which one would be better", GAPKI chairman Eddy Martono stated, referring to the possibility a boost in exports would make providing the domestic market less practical.
Indonesia's palm oil output is approximated to reach 54.4 million heaps in 2024, a 2.26% boost from in 2015, while exports are expected to decline by 2.47% to 29.5 million heaps as domestic consumption increased, driven by biodiesel mandate.
The ministry had tested the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier this week, while planning to check the B40 mix on agriculture equipment, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati
1
Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
Chloe Rosen edited this page 1 month ago