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

JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil producer, is evaluating 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 implemented, the B40 mandate could increase biodiesel intake to as much as 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.


"We hope the trials might be ended up in December, so that complete application of B40 might be brought out in 2025," energy ministry senior main Eniya Listiani Dewi stated in a declaration on Tuesday.


The Indonesian Biofuel Producers Association (APROBI) said the market had the capacity to meet B40 demand, with set up capability expected to rise to 20 million KL every year next year from 18 million KL now.


"However we will require more raw products to satisfy B40 need," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.


The biodiesel industry would require 13.9 million metric lots of unrefined 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 indicated there would suffice raw materials to provide the B40 mandate in the meantime.


But the industry would need to assess "which one would be better", GAPKI chairman Eddy Martono said, describing the possibility a boost in exports would make providing the domestic market less practical.


Indonesia's palm oil output is estimated to reach 54.4 million tons in 2024, a 2.26% increase from in 2015, while exports are anticipated to decline by 2.47% to 29.5 million heaps as domestic intake increased, driven by biodiesel required.


The ministry had actually evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while planning 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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