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 blended into biodiesel next year, the energy ministry said.
If implemented, the B40 mandate might increase biodiesel consumption 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 completed in December, so that complete application of B40 could be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capacity to meet B40 need, with set up capability expected to rise to 20 million KL yearly next year from 18 million KL now.
"However we will need more basic materials to satisfy B40 need," Ernest Gunawan, the secretary 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 heaps required this year, he included.
Indonesia's biggest palm oil association GAPKI stated a decline in exports suggested there would be enough basic materials to supply the B40 mandate in the meantime.
But the market would need to evaluate "which one would be better", 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 estimated to reach 54.4 million heaps in 2024, a 2.26% increase from last year, while exports are anticipated to decline by 2.47% to 29.5 million loads as domestic consumption increased, driven by biodiesel required.
The ministry had actually the biodiesel, mixed with 40% of palm oil, on a train for the first time earlier this week, while planning to evaluate 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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Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
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