JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest 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 stated.
If implemented, the B40 required might increase biodiesel intake to as much as 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.
"We hope the trials might be ended up in December, so that full execution of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.
The Indonesian Biofuel Association (APROBI) stated the industry had the capability to fulfill B40 need, with set up capacity anticipated to increase to 20 million KL each year next year from 18 million KL now.
"However we will require more basic materials to satisfy B40 demand," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel industry would need 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million tons required this year, he included.
Indonesia's greatest palm oil association GAPKI said a decrease in exports indicated there would be adequate raw products to provide the B40 required in the meantime.
But the market would need to assess "which one would be better", GAPKI chairman Eddy Martono stated, describing the possibility an increase in exports would make providing the domestic market less viable.
Indonesia's palm oil output is approximated to reach 54.4 million lots in 2024, a 2.26% boost from in 2015, while exports are expected to decline by 2.47% to 29.5 million tons as domestic intake rose, driven by biodiesel mandate.
The ministry had checked the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier this week, while planning to check the B40 mix on farming machinery, 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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