Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
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 blended into biodiesel next year, the energy ministry stated.
If carried out, the B40 required could increase biodiesel intake to as much as 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated to be consumed in 2024.
"We hope the trials could be finished in December, so that complete application of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi stated in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the industry had the capability to meet B40 demand, with set up capability expected to increase to 20 million KL each year next year from 18 million KL now.
"However we will require more raw materials to fulfill B40 demand," Ernest Gunawan, the secretary 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 estimated 11 million heaps required this year, he included.
Indonesia's biggest palm oil association GAPKI said a decrease in exports implied there would be enough raw materials to supply the B40 required in the meantime.
But the industry would require to evaluate "which one would be better", GAPKI chairman Eddy Martono said, 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 decline by 2.47% to 29.5 million loads as domestic consumption rose, driven by biodiesel required.
The ministry had evaluated the biodiesel, mixed with 40% of palm oil, on a train for the very first time earlier today, while preparing to evaluate the B40 mix on agriculture machinery, power plants and in the shipping market, it stated. (Reporting by and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)