Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil blended 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 said, from 13 million KL estimated to be consumed in 2024.
"We hope the trials might be ended up in December, so that full execution of B40 could be brought out in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to satisfy B40 need, with installed capability anticipated to increase to 20 million KL yearly next year from 18 million KL now.
"However we will require more basic materials to satisfy B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel market would require 13.9 million metric loads of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million loads needed this year, he included.
Indonesia's most significant palm oil association GAPKI stated a decrease in exports meant there would be adequate raw products to provide the B40 required for now.
But the market would require to evaluate "which one would be better", GAPKI chairman Eddy Martono said, referring to the possibility a boost in exports would make providing the domestic market less viable.
Indonesia's palm oil output is approximated to reach 54.4 million tons in 2024, a 2.26% boost from last year, while exports are expected to decline by 2.47% to 29.5 million loads as domestic usage rose, driven by biodiesel mandate.
The ministry had actually checked the biodiesel, combined with 40% of palm oil, on a train for the very first time previously this week, while preparing to test the B40 mix on farming machinery, power plants and in the shipping industry, it stated. (Reporting by and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)