Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
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JAKARTA, July 24 (Reuters) - Indonesia, the world’s most significant palm oil manufacturer, is evaluating 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 executed, the B40 required might increase biodiesel intake 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 might be finished in December, so that full execution of B40 could be brought out in 2025,” energy ministry senior official Eniya Listiani Dewi stated in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the market had the capability to satisfy B40 demand, with set up capability expected to rise to 20 million KL annually next year from 18 million KL now.

“However we will need more basic materials to fulfill B40 need,” Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.

The biodiesel industry would require 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps needed this year, he included.

Indonesia’s most significant palm oil association GAPKI said a decline in exports meant there would be enough basic materials to provide the B40 mandate in the meantime.

But the market would require to assess “which one would be better”, GAPKI chairman Eddy Martono stated, referring to 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 lots in 2024, a 2.26% increase from last year, while exports are anticipated to decrease by 2.47% to 29.5 million heaps as domestic usage increased, driven by biodiesel mandate.

The ministry had checked the biodiesel, mixed with 40% of palm oil, on a train for the very first time earlier this week, while preparing to check the B40 mix on farming equipment, power plants and in the shipping market, it stated. ( by Bernadette Christina and Dewi Kurniawati