Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025

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JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil producer, is evaluating fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year,.

JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil producer, is checking 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 executed, the B40 required might increase biodiesel intake to as much as 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.


"We hope the trials might be ended up in December, so that full implementation of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi stated in a statement on Tuesday.


The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to fulfill B40 need, with installed capability anticipated to increase to 20 million KL annually next year from 18 million KL now.


"However we will need more raw products to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.


The biodiesel industry would require 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 added.


Indonesia's greatest palm oil association GAPKI stated a decrease in exports meant there would suffice raw materials to supply the B40 mandate for now.


But the industry would need to evaluate "which one would be more important", GAPKI chairman Eddy Martono said, referring to the possibility a boost in exports would make providing the domestic market less feasible.


Indonesia's palm oil output is estimated to reach 54.4 million loads in 2024, a 2.26% increase from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million loads as domestic intake increased, driven by biodiesel mandate.


The ministry had actually tested the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier today, while planning to check the B40 mix on farming machinery, 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)

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