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 combined into biodiesel next year, the energy ministry stated.
If implemented, the B40 required might increase biodiesel consumption 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 ended up in December, so that full implementation of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the market had the capacity to meet B40 demand, with installed capability anticipated to rise to 20 million KL each year next year from 18 million KL now.
"However we will need more raw products to meet B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel market would require 13.9 million metric tons of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps required this year, he included.
Indonesia's greatest palm oil association GAPKI stated a decline in exports implied there would be adequate raw products to provide the B40 required in the meantime.
But the industry would require to evaluate "which one would be better", GAPKI chairman Eddy Martono stated, describing the a boost in exports would make supplying the domestic market less viable.
Indonesia's palm oil output is approximated to reach 54.4 million heaps in 2024, a 2.26% increase from in 2015, while exports are anticipated to decline by 2.47% to 29.5 million loads as domestic intake increased, driven by biodiesel mandate.
The ministry had actually evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time previously this week, while planning 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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