Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025

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JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil producer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the.

JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant 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 mandate could increase biodiesel usage to as much as 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 ended up in December, so that complete implementation of B40 could be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.


The Indonesian Biofuel Producers Association (APROBI) said the market had the capacity to meet B40 need, with set up capacity anticipated to increase to 20 million KL annually next year from 18 million KL now.


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


The biodiesel market would require 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million tons required this year, he included.


Indonesia's greatest palm oil association GAPKI said a decrease in exports suggested there would be sufficient basic materials to supply the B40 required for now.


But the industry would require to evaluate "which one would be better", GAPKI chairman Eddy Martono said, referring to the possibility an increase in exports would make supplying the domestic market less practical.


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


The ministry had evaluated the biodiesel, blended with 40% of palm oil, on a train for the first time previously today, while preparing to evaluate the B40 mix on agriculture equipment, power plants and in the shipping market, it said. (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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