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<br>JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil producer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil mixed into [biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) next year, the energy ministry stated.<br> |
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<br>If implemented, the B40 required might increase [biodiesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) consumption to up to 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated to be consumed in 2024.<br> |
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<br>"We hope the trials could be finished in December, so that complete execution of B40 might be performed in 2025," energy ministry [senior main](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) Eniya Listiani Dewi said in a declaration on Tuesday.<br> |
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<br>The Indonesian [Biofuel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) Producers [Association](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) (APROBI) said the market had the capacity to fulfill B40 demand, with set up capacity expected to increase to 20 million KL annually next year from 18 million KL now.<br> |
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<br>"However we will require more basic materials to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.<br> |
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<br>The [biodiesel industry](https://www.crunchbase.com/organization/mission-newenergy) would need 13.9 million metric lots of unrefined palm oil to [produce](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) 16 million KL [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) next year, from the estimated 11 million heaps required this year, he added.<br> |
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<br>[Indonesia's](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) most significant palm oil association GAPKI stated a decrease in [exports implied](https://www.pinterest.com.au/missionnewenergy/) there would be enough basic materials to supply the B40 [required](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) in the meantime.<br> |
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<br>But the industry would [require](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) to evaluate "which one would be better", Eddy Martono said, referring to the possibility a boost in exports would make [supplying](https://www.bloomberg.com/profile/company/MNELF:US) the domestic market less viable.<br> |
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<br>[Indonesia's palm](https://forest500.org/rankings/companies/mission-newenergy-limited) oil output is approximated to reach 54.4 million tons in 2024, a 2.26% increase from in 2015, while exports are expected to [decrease](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) by 2.47% to 29.5 million lots as [domestic consumption](https://stocktwits.com/symbol/MNEL) rose, driven by [biodiesel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) mandate.<br> |
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<br>The ministry had actually [checked](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) the biodiesel, [combined](https://www.bloomberg.com/profile/company/MNELF:US) with 40% of palm oil, on a train for the very first time earlier this week, while planning to check the B40 mix on agriculture machinery, [power plants](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati |
