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 energy ministry said.
If executed, the B40 mandate could increase biodiesel intake 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 ended up in December, so that complete implementation of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to satisfy B40 need, with set up capability anticipated to rise to 20 million KL yearly 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 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 tons needed this year, he added.
Indonesia's most significant palm oil association GAPKI stated a decline in exports meant there would be sufficient raw materials to supply the B40 required for now.
But the market would require to examine "which one would be more valuable", GAPKI chairman Eddy Martono stated, describing the possibility a boost in exports would make supplying the domestic market less feasible.
Indonesia's palm oil output is approximated to reach 54.4 million lots in 2024, a 2.26% boost from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million tons as domestic intake increased, driven by biodiesel required.
The ministry had actually checked the biodiesel, blended with 40% of palm oil, on a train for the very first time previously today, while preparing to evaluate the B40 mix on farming machinery, power plants and in the shipping industry, it stated. (Reporting by and Dewi Kurniawati
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Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
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