JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil producer, 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 could increase biodiesel usage to up to 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.
"We hope the trials could be completed in December, so that full implementation of B40 could be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the industry had the capability to satisfy B40 demand, with installed capacity expected to rise to 20 million KL each year next year from 18 million KL now.
"However we will require more basic materials to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel industry would need 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million tons needed this year, he included.
Indonesia's biggest palm oil association GAPKI stated a decline in exports suggested there would suffice to supply the B40 mandate for now.
But the industry would require to evaluate "which one would be more important", GAPKI chairman Eddy Martono said, referring to the possibility an increase in exports would make supplying the domestic market less practical.
Indonesia's palm oil output is approximated to reach 54.4 million loads in 2024, a 2.26% boost from last year, while exports are anticipated to decline by 2.47% to 29.5 million heaps as domestic usage increased, driven by biodiesel mandate.
The ministry had tested the biodiesel, combined with 40% of palm oil, on a train for the first time previously today, while planning to test the B40 mix on agriculture equipment, power plants and in the shipping industry, 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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