Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant 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 implemented, the B40 mandate might increase biodiesel intake to as much as 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 finished in December, so that full implementation of B40 might be performed in 2025," senior official Eniya Listiani Dewi stated in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the industry had the capability to satisfy B40 demand, with set up capacity anticipated to increase to 20 million KL every year next year from 18 million KL now.
"However we will require more raw products to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI told 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 greatest palm oil association GAPKI said a decline in exports suggested there would be sufficient raw materials to provide the B40 mandate for now.
But the industry would need to examine "which one would be better", GAPKI chairman Eddy Martono said, referring to the possibility a boost in exports would make supplying the domestic market less practical.
Indonesia's palm oil output is approximated to reach 54.4 million heaps in 2024, a 2.26% boost from in 2015, while exports are anticipated to decline by 2.47% to 29.5 million heaps as domestic intake rose, driven by biodiesel required.
The ministry had tested the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier this week, while planning to evaluate the B40 mix on agriculture machinery, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)