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Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
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JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil producer, 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 implemented, the B40 required might increase biodiesel intake to approximately 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated 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," energy ministry senior official Eniya Listiani Dewi stated in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capability to meet B40 need, with installed capability anticipated to increase to 20 million KL every year next year from 18 million KL now.
"However we will require more raw products to fulfill B40 demand," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel industry would need 13.9 million metric tons of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million tons needed this year, he included.
Indonesia's biggest palm oil association GAPKI stated a decline in exports implied there would suffice raw materials to provide the B40 mandate in the meantime.
But the industry would need to examine "which one would be more valuable", GAPKI chairman Eddy Martono said, describing the possibility an increase in exports would make supplying the domestic market less practical.
oil output is approximated to reach 54.4 million loads in 2024, a 2.26% boost from in 2015, while exports are expected to decrease by 2.47% to 29.5 million lots as domestic consumption rose, driven by biodiesel mandate.
The ministry had tested the biodiesel, blended with 40% of palm oil, on a train for the first time previously this week, while preparing to evaluate the B40 mix on farming machinery, power plants and in the shipping market, it said. (Reporting by Bernadette Christina and Dewi Kurniawati
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