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Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
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 implemented, the B40 required could increase biodiesel consumption 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 finished in December, so that complete implementation of B40 could be performed in 2025,” energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to fulfill B40 demand, with set up capability expected to rise to 20 million KL each year next year from 18 million KL now.
“However we will need more basic materials to satisfy B40 demand,” Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel industry would need 13.9 million metric tons of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million lots required this year, he included.
Indonesia’s most significant palm oil association GAPKI said a decline in exports indicated there would be adequate basic materials to provide the B40 mandate for now.
But the industry would need to examine “which one would be more important”, GAPKI chairman Eddy said, describing the possibility a boost in exports would make supplying the domestic market less practical.
Indonesia’s palm oil output is approximated to reach 54.4 million tons in 2024, a 2.26% increase from last year, while exports are anticipated to decrease by 2.47% to 29.5 million loads as domestic intake rose, driven by biodiesel required.
The ministry had actually checked the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while preparing to test the B40 mix on agriculture equipment, 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)