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 most significant palm oil producer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the energy ministry said.
If executed, the B40 required might increase biodiesel intake to up to 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 finished in December, so that full application of B40 could be carried out in 2025," energy ministry senior main Eniya Listiani Dewi stated in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capacity to meet B40 need, with installed capability anticipated to rise to 20 million KL yearly next year from 18 million KL now.
"However we will need more raw products to satisfy B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel industry would require 13.9 million metric heaps of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million lots needed this year, he added.
Indonesia's greatest palm oil association GAPKI stated a decline in exports indicated there would suffice raw products to provide the B40 mandate in the meantime.
But the market would need to assess "which one would be better", GAPKI chairman Eddy Martono said, referring to the possibility a boost in exports would make providing the domestic market less viable.
Indonesia's palm oil output is estimated to reach 54.4 million lots in 2024, a 2.26% increase from in 2015, while exports are expected to by 2.47% to 29.5 million lots as domestic intake increased, driven by biodiesel required.
The ministry had evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time previously this week, while preparing to check the B40 mix on farming machinery, power plants and in the shipping market, it said. (Reporting by Bernadette Christina and Dewi Kurniawati
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