Sidan "Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025"
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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 mixed into biodiesel next year, the energy ministry stated.
If executed, 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 could be ended up in December, so that complete implementation of B40 could be performed in 2025," energy ministry senior main Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the industry had the capability to meet B40 demand, with installed capability anticipated to rise to 20 million KL each year next year from 18 million KL now.
"However we will need more raw materials to satisfy B40 need," Ernest Gunawan, the secretary general of APROBI told 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 needed this year, he added.
Indonesia's biggest palm oil association GAPKI stated a decline in exports suggested there would be enough raw materials to provide the B40 required for now.
But the industry would need to examine "which one would be more valuable", GAPKI chairman Eddy Martono stated, referring to the possibility an increase in exports would make supplying the domestic market less viable.
Indonesia's palm oil output is approximated to reach 54.4 million loads 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 consumption increased, driven by biodiesel required.
The ministry had checked the biodiesel, mixed with 40% of palm oil, on a train for the very first time earlier this week, while planning to check the B40 mix on farming equipment, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati
Sidan "Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025"
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