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 could increase biodiesel intake to approximately 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated to be consumed in 2024.
"We hope the trials could be ended up in December, so that full implementation of B40 could be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capability to satisfy B40 need, with installed capacity anticipated to increase to 20 million KL annually next year from 18 million KL now.
"However we will need more basic materials to fulfill B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel industry would require 13.9 million metric tons of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million heaps required this year, he added.
Indonesia's most significant palm oil association GAPKI said a decline in exports suggested there would be adequate basic materials to supply the B40 mandate in the meantime.
But the industry would require to assess "which one would be better", GAPKI chairman Eddy Martono said, referring to the possibility an increase in exports would make supplying the domestic market less feasible.
Indonesia's palm oil output is estimated to reach 54.4 million loads in 2024, a 2.26% increase from in 2015, while exports are expected to decline by 2.47% to 29.5 million loads as domestic consumption increased, driven by biodiesel required.
The ministry had actually evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier this week, while to test the B40 mix on farming 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
Jocelyn Halverson edited this page 2025-01-12 06:09:04 +11:00