JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil manufacturer, is evaluating 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 mandate could increase biodiesel intake to up to 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 completed in December, so that complete implementation of B40 could be brought out in 2025," energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to fulfill B40 need, with set up capability anticipated to increase to 20 million KL annually next year from 18 million KL now.
"However we will need more raw materials to meet B40 need," 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 lots required this year, he added.
Indonesia's most significant palm oil association GAPKI said a decrease in exports implied there would suffice basic materials to supply the B40 required in the meantime.
But the industry would require to examine "which one would be more important", 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 tons in 2024, a 2.26% increase from last year, while exports are expected to decline by 2.47% to 29.5 million lots as domestic usage increased, driven by biodiesel required.
The ministry had actually tested the biodiesel, combined with 40% of palm oil, on a train for the first time earlier today, while preparing to evaluate the B40 mix on agriculture machinery, power plants and in the shipping industry, it said. (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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