This will delete the page "Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025"
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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 implemented, the B40 required could increase biodiesel usage to approximately 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 finished in December, so that complete application of B40 could be performed in 2025," senior main Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to fulfill B40 need, with set up capability expected to increase to 20 million KL annually next year from 18 million KL now.
"However we will need more raw products to satisfy B40 need," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel market would need 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million loads needed this year, he added.
Indonesia's biggest palm oil association GAPKI said a decrease in exports suggested there would suffice raw products to provide the B40 mandate for now.
But the market would need to examine "which one would be more valuable", GAPKI chairman Eddy Martono stated, describing the possibility an increase in exports would make supplying the domestic market less viable.
Indonesia's palm oil output is approximated to reach 54.4 million loads in 2024, a 2.26% boost from last year, while exports are anticipated to decline by 2.47% to 29.5 million tons as domestic consumption increased, driven by biodiesel required.
The ministry had actually evaluated the biodiesel, blended with 40% of palm oil, on a train for the first time earlier today, while preparing to test the B40 mix on agriculture machinery, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati
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