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 biggest palm oil manufacturer, is evaluating fuel with a view to increasing to 40% from 35% the share of palm-oil combined into biodiesel next year, the energy ministry stated.
If implemented, the B40 required could increase biodiesel usage 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 ended up in December, so that complete execution 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) said the market had the capability to meet B40 need, with installed capability expected to increase to 20 million KL every year 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 need 13.9 million metric heaps of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million heaps needed this year, he added.
Indonesia's most significant palm oil association GAPKI stated a decline in exports meant there would suffice basic to provide the B40 mandate in the meantime.
But the market would need to evaluate "which one would be more valuable", GAPKI chairman Eddy Martono said, describing 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 loads in 2024, a 2.26% boost from in 2015, while exports are expected to decline by 2.47% to 29.5 million tons as domestic consumption rose, driven by biodiesel mandate.
The ministry had tested the biodiesel, combined with 40% of palm oil, on a train for the very first time previously this week, while preparing to test the B40 mix on farming equipment, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati
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