Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil manufacturer, 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 carried out, the B40 required could increase biodiesel consumption to approximately 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 execution of B40 might be performed in 2025," energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the had the capacity to fulfill B40 demand, with set up capability expected to rise to 20 million KL annually next year from 18 million KL now.
"However we will need more basic materials to fulfill B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel market would need 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps required this year, he added.
Indonesia's biggest palm oil association GAPKI said a decline in exports indicated there would suffice raw materials to supply the B40 required for now.
But the market would require to evaluate "which one would be better", 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 heaps in 2024, a 2.26% increase from last year, while exports are anticipated to decrease by 2.47% to 29.5 million tons as domestic usage rose, driven by biodiesel mandate.
The ministry had checked the biodiesel, blended with 40% of palm oil, on a train for the first time earlier today, while preparing to check the B40 mix on farming machinery, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)