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 implemented, the B40 mandate might increase biodiesel consumption 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 could be finished in December, so that complete execution of B40 might be carried out in 2025," energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the market had the capability to fulfill B40 need, with set up 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 meet B40 demand," Ernest Gunawan, the general of APROBI told 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 tons needed this year, he included.
Indonesia's greatest palm oil association GAPKI stated a decrease in exports implied there would be adequate basic materials to supply the B40 mandate for now.
But the industry would need to evaluate "which one would be better", GAPKI chairman Eddy Martono stated, referring to the possibility an increase in exports would make supplying the domestic market less practical.
Indonesia's palm oil output is approximated to reach 54.4 million lots in 2024, a 2.26% increase from in 2015, while exports are expected to decrease by 2.47% to 29.5 million loads as domestic intake increased, driven by biodiesel required.
The ministry had evaluated the biodiesel, combined with 40% of palm oil, on a train for the very first time previously this week, while planning to test the B40 mix on farming equipment, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati
1
Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
Belle Jeffcott edited this page 6 months ago