Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
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 stated.
If implemented, the B40 required could increase biodiesel usage 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 full implementation of B40 could be performed in 2025," energy ministry senior main Eniya Listiani Dewi stated in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to satisfy B40 demand, with installed capability expected to rise to 20 million KL yearly next year from 18 million KL now.
"However we will require more raw products to satisfy B40 demand," Ernest Gunawan, the secretary general of APROBI informed 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 lots needed this year, he added.
Indonesia's biggest palm oil association GAPKI stated a decrease in exports indicated there would be sufficient raw products to provide the B40 mandate for now.
But the market would need to examine "which one would be more important", GAPKI chairman Eddy Martono stated, describing the possibility a boost in exports would make providing the domestic market less viable.
Indonesia's palm oil output is approximated to reach 54.4 million tons in 2024, a 2.26% boost from in 2015, while exports are anticipated to decline by 2.47% to 29.5 million loads as increased, driven by biodiesel mandate.
The ministry had actually tested the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier today, while preparing to evaluate the B40 mix on agriculture machinery, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)