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 combined into biodiesel next year, the energy ministry said.
If executed, the B40 required 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 completed in December, so that full application of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capability to fulfill B40 demand, with installed capacity to increase to 20 million KL every year next year from 18 million KL now.
"However we will need more basic materials to satisfy B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel market would need 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps needed this year, he included.
Indonesia's biggest palm oil association GAPKI said a decrease in exports implied there would suffice basic materials to provide the B40 mandate in the meantime.
But the industry would require to assess "which one would be more valuable", GAPKI chairman Eddy Martono said, describing 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 heaps in 2024, a 2.26% increase from last year, while exports are anticipated to decline by 2.47% to 29.5 million heaps as domestic intake rose, driven by biodiesel required.
The ministry had tested the biodiesel, blended 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 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
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