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 manufacturer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year,.

JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil manufacturer, 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 stated.


If carried out, the B40 required could increase biodiesel usage to as much as 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 fulfill B40 need, with set up capacity expected to increase to 20 million KL annually next year from 18 million KL now.


"However we will require more raw materials to fulfill B40 demand," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.


The biodiesel industry would need 13.9 million metric lots 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 indicated there would suffice basic materials to provide the B40 required in the meantime.


But the industry would require 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 estimated to reach 54.4 million heaps in 2024, a 2.26% increase from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million heaps as domestic consumption increased, driven by biodiesel mandate.


The ministry had actually checked the biodiesel, blended with 40% of palm oil, on a train for the very first time previously today, while preparing to evaluate the B40 mix on farming machinery, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)

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