JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil producer, 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 stated.
If carried out, the B40 mandate could increase biodiesel intake to as much as 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 finished in December, so that complete application of B40 might be brought out in 2025," energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the market had the capability to meet B40 demand, with installed capability expected to increase to 20 million KL yearly next year from 18 million KL now.
"However we will require more basic materials to meet B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel industry would require 13.9 million metric tons of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million tons required this year, he added.
Indonesia's most significant palm oil association GAPKI stated a decline in exports meant there would be sufficient basic materials to supply the B40 mandate in the meantime.
But the industry would require to examine "which one would be more important", GAPKI chairman Eddy Martono said, referring to the a boost in exports would make supplying the domestic market less practical.
Indonesia's palm oil output is estimated to reach 54.4 million heaps in 2024, a 2.26% boost from last year, while exports are anticipated to decrease by 2.47% to 29.5 million loads as domestic intake increased, driven by biodiesel mandate.
The ministry had actually tested the biodiesel, blended with 40% of palm oil, on a train for the very first time previously this week, while preparing to check the B40 mix on agriculture 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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