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 manufacturer, is evaluating 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 executed, the B40 required might increase biodiesel usage to up to 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.
"We hope the trials could be completed in December, so that full application of B40 could be brought out in 2025," energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capacity to satisfy B40 need, with set up capacity anticipated to rise to 20 million KL yearly next year from 18 million KL now.
"However we will require more raw materials to fulfill B40 demand," Ernest Gunawan, the 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 approximated 11 million lots needed this year, he included.
Indonesia's most significant palm oil association GAPKI said a decrease in exports suggested there would be enough basic materials to provide the B40 mandate for now.
But the industry would require to assess "which one would be better", GAPKI chairman Eddy Martono stated, referring to the possibility an increase in exports would make providing the domestic market less feasible.
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 heaps as domestic consumption increased, driven by biodiesel required.
The ministry had evaluated the biodiesel, mixed with 40% of palm oil, on a train for the first time earlier this week, while planning to test the B40 mix on farming equipment, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati
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