JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant 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 said.
If carried out, the B40 required might increase biodiesel intake to approximately 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 full execution of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to meet B40 need, with installed capacity expected to increase to 20 million KL each year next year from 18 million KL now.
"However we will need more raw materials to satisfy B40 demand," Ernest Gunawan, the secretary general of APROBI informed 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 lots required this year, he included.
Indonesia's greatest palm oil association GAPKI said a decrease in exports meant there would be adequate raw materials to provide the B40 for now.
But the industry would require to examine "which one would be better", GAPKI chairman Eddy Martono stated, referring to 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 heaps in 2024, a 2.26% boost from last year, while exports are expected to decrease by 2.47% to 29.5 million loads as domestic usage rose, driven by biodiesel mandate.
The ministry had actually evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier this week, while planning to check the B40 mix on agriculture machinery, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati
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Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
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