JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest 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 carried out, the B40 required might increase biodiesel intake to up to 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 implementation of B40 could be performed in 2025," energy ministry senior main Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capability to satisfy B40 demand, with installed capacity expected to rise to 20 million KL each year next year from 18 million KL now.
"However we will need more raw materials to fulfill B40 demand," Ernest Gunawan, the general of APROBI told Reuters on Wednesday.
The biodiesel industry would require 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million tons needed this year, he included.
Indonesia's biggest palm oil association GAPKI stated a decline in exports implied there would suffice basic materials to provide the B40 mandate in the meantime.
But the market would need to assess "which one would be better", GAPKI chairman Eddy Martono said, referring to the possibility a boost in exports would make providing the domestic market less viable.
Indonesia's palm oil output is estimated to reach 54.4 million heaps in 2024, a 2.26% increase from in 2015, while exports are anticipated to decline by 2.47% to 29.5 million loads as domestic consumption rose, driven by biodiesel required.
The ministry had actually checked the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while planning to evaluate the B40 mix on agriculture equipment, power plants and in the shipping market, 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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