Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil manufacturer, is checking 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 carried out, the B40 required might increase biodiesel intake 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 might be ended up in December, so that complete execution of B40 could be performed 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 capability anticipated to increase to 20 million KL annually next year from 18 million KL now.
"However we will need more basic materials to satisfy 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 estimated 11 million heaps needed this year, he added.
Indonesia's greatest palm oil association GAPKI said a decrease in exports meant 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 valuable", GAPKI chairman Eddy Martono stated, describing the possibility a boost in exports would make providing the domestic market less viable.
Indonesia's palm oil output is estimated to reach 54.4 million loads in 2024, a 2.26% increase from in 2015, while exports are expected to decrease by 2.47% to 29.5 million lots as domestic consumption increased, driven by biodiesel mandate.
The ministry had 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 machinery, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)