Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
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 blended into biodiesel next year, the energy ministry said.
If executed, the B40 mandate could increase biodiesel to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.
"We hope the trials might be finished in December, so that full implementation of B40 might be brought out in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to meet B40 need, with set up capacity expected to increase to 20 million KL every year next year from 18 million KL now.
"However we will need more raw materials to fulfill B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel industry would need 13.9 million metric loads of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps required this year, he included.
Indonesia's most significant palm oil association GAPKI stated a decline in exports implied there would suffice basic materials to supply the B40 required for now.
But the market would need to examine "which one would be more important", GAPKI chairman Eddy Martono said, 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 decrease by 2.47% to 29.5 million loads as domestic intake rose, driven by biodiesel required.
The ministry had tested the biodiesel, combined with 40% of palm oil, on a train for the very first time previously this week, while planning to evaluate the B40 mix on farming machinery, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)