JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil manufacturer, is testing 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 executed, the B40 mandate might increase biodiesel usage to approximately 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 completed in December, so that complete application of B40 might be brought out in 2025," energy ministry senior main Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to satisfy B40 need, with installed capability anticipated to increase to 20 million KL annually next year from 18 million KL now.
"However we will need more basic materials to meet B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel industry would require 13.9 million metric loads of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million tons required this year, he added.
Indonesia's most significant palm oil association GAPKI stated a decrease in exports meant there would suffice raw products to provide the B40 mandate for now.
But the market would need to examine "which one would be more important", GAPKI chairman Eddy Martono said, to the possibility a boost in exports would make supplying the domestic market less feasible.
Indonesia's palm oil output is approximated to reach 54.4 million lots in 2024, a 2.26% increase from in 2015, while exports are expected to decrease by 2.47% to 29.5 million lots as domestic consumption rose, driven by biodiesel mandate.
The ministry had tested the biodiesel, blended with 40% of palm oil, on a train for the very first time previously this week, while preparing to check the B40 mix on agriculture machinery, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati
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Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
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