This will delete the page "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 mixed into biodiesel next year, the energy ministry stated.
If carried out, the B40 mandate could increase biodiesel intake to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.
"We hope the trials might be finished in December, so that complete implementation of B40 might be brought out in 2025," energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the industry had the capability to satisfy B40 need, with set up capacity expected to increase to 20 million KL yearly next year from 18 million KL now.
"However we will need more basic materials to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel market would need 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million tons required this year, he included.
Indonesia's greatest palm oil association GAPKI said a decrease in exports meant there would be adequate basic materials to supply the B40 required in the meantime.
But the market would need to evaluate "which one would be better", GAPKI chairman Eddy Martono stated, describing the possibility a boost in exports would make supplying the domestic market less practical.
Indonesia's palm oil output is approximated to reach 54.4 million loads in 2024, a 2.26% from in 2015, while exports are expected to decline by 2.47% to 29.5 million lots as domestic intake increased, 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 planning to check the B40 mix on farming machinery, power plants and in the shipping market, it said. (Reporting by Bernadette Christina and Dewi Kurniawati
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