JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil producer, 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 stated.
If implemented, the B40 mandate might increase biodiesel intake to up to 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated to be consumed in 2024.
"We hope the trials might be completed in December, so that complete implementation of B40 might be brought out in 2025," energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the market had the capability to meet B40 demand, with set up capability anticipated to rise to 20 million KL each year next year from 18 million KL now.
"However we will need more basic materials to satisfy B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel market would need 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million lots required this year, he included.
Indonesia's biggest palm oil association GAPKI said a decrease in exports meant there would suffice basic materials to supply the B40 mandate in the meantime.
But the industry would require to assess "which one would be more valuable", GAPKI chairman Eddy Martono said, referring to the possibility an in exports would make supplying the domestic market less practical.
Indonesia's palm oil output is estimated to reach 54.4 million loads in 2024, a 2.26% boost from last year, while exports are expected to decrease by 2.47% to 29.5 million heaps as domestic usage rose, 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 today, while preparing to evaluate the B40 mix on agriculture equipment, power plants and in the shipping industry, it said. (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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