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Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
JAKARTA, July 24 (Reuters) – Indonesia, the world’s most significant palm oil manufacturer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the energy ministry said.
If implemented, the B40 required might increase biodiesel consumption 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 complete implementation of B40 might be brought out 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 yearly next year from 18 million KL now.
“However we will need more basic materials to meet B40 need,” Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel industry would 13.9 million metric loads of unrefined 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 indicated there would be adequate basic materials to supply the B40 mandate for now.
But the industry would require to evaluate “which one would be better”, GAPKI chairman Eddy Martono said, referring to the possibility a boost in exports would make supplying the domestic market less viable.
Indonesia’s palm oil output is estimated to reach 54.4 million lots in 2024, a 2.26% increase from in 2015, while exports are expected to decline by 2.47% to 29.5 million tons as domestic intake increased, driven by biodiesel mandate.
The ministry had tested the biodiesel, blended with 40% of palm oil, on a train for the very first time previously today, while planning to check the B40 mix on farming equipment, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D’Souza and Barbara Lewis)