Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025

JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil producer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil mixed into biodiesel next year, the.

JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil combined into biodiesel next year, the energy ministry said.


If carried out, the B40 required might increase biodiesel usage to approximately 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 ended up in December, so that full implementation of B40 might be performed 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 fulfill B40 need, with installed capacity anticipated to increase to 20 million KL each year next year from 18 million KL now.


"However we will require more raw materials to meet B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.


The biodiesel market would need 13.9 million metric heaps of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million lots required this year, he added.


Indonesia's biggest palm oil association GAPKI stated a decline in exports indicated there would suffice basic materials to supply the B40 mandate in the meantime.


But the industry would require to evaluate "which one would be more important", GAPKI chairman Eddy Martono said, describing the possibility an increase in exports would make providing the domestic market less feasible.


Indonesia's palm oil output is approximated to reach 54.4 million heaps in 2024, a 2.26% increase from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million loads as domestic consumption increased, driven by biodiesel mandate.


The ministry had actually checked the biodiesel, mixed with 40% of palm oil, on a train for the very first time earlier today, while preparing 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)


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