Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
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 combined into next year, the energy ministry stated.
If implemented, the B40 required might 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 implementation of B40 might be carried out in 2025," energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the market had the capacity to satisfy B40 need, with installed capacity expected to increase to 20 million KL annually next year from 18 million KL now.
"However we will require more raw materials to satisfy B40 need," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel industry would need 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million loads required this year, he added.
Indonesia's greatest palm oil association GAPKI stated a decline in exports meant there would suffice basic materials to provide the B40 required for now.
But the market would need to assess "which one would be better", GAPKI chairman Eddy Martono stated, describing the possibility an increase in exports would make providing the domestic market less feasible.
Indonesia's palm oil output is estimated to reach 54.4 million tons in 2024, a 2.26% boost from last year, while exports are expected to decrease by 2.47% to 29.5 million tons as domestic usage rose, driven by biodiesel mandate.
The ministry had checked the biodiesel, mixed with 40% of palm oil, on a train for the very first time previously today, while planning to check the B40 mix on farming equipment, power plants and in the shipping market, it said. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)