JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, is checking 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 could increase biodiesel consumption to approximately 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.
"We hope the trials could be ended up in December, so that full application of B40 might be carried out in 2025," energy ministry senior main Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to fulfill B40 demand, with installed capacity expected to rise to 20 million KL every year next year from 18 million KL now.
"However we will require more raw products to satisfy B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel industry would need 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps needed this year, he added.
Indonesia's most significant palm oil association GAPKI stated a decline in exports implied there would be sufficient basic materials to provide the B40 mandate for now.
But the industry would need to examine "which one would be better", GAPKI chairman Eddy Martono stated, describing the possibility a boost in exports would make providing the domestic market less feasible.
Indonesia's palm oil output is approximated to reach 54.4 million tons in 2024, a 2.26% boost from last year, while exports are anticipated to decline by 2.47% to 29.5 million lots as increased, driven by biodiesel required.
The ministry had actually tested the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while preparing to evaluate the B40 mix on farming equipment, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati
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Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
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