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 producer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil combined into biodiesel next year, the energy ministry said.
If executed, the B40 required might increase biodiesel consumption to as much as 16 million (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.
"We hope the trials might be finished in December, so that complete application of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capability to meet B40 demand, with installed capacity anticipated to rise to 20 million KL each year next year from 18 million KL now.
"However we will need more raw products to satisfy 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 loads required this year, he added.
Indonesia's most significant palm oil association GAPKI stated a decline in exports meant there would be enough basic materials to provide the B40 required in the meantime.
But the industry would require to examine "which one would be more important", GAPKI chairman Eddy Martono stated, describing the possibility an increase in exports would make providing the domestic market less viable.
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 anticipated to decrease by 2.47% to 29.5 million lots as domestic intake 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 previously today, while planning to evaluate the B40 mix on farming machinery, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati
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