Page: Indonesia Plans Increase in Palm Oil based Biodiesel In 2025

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1 Indonesia Plans Increase in Palm Oil based Biodiesel In 2025

Trent Spears edited this page 7 days ago

JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil producer, is testing 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 mandate might increase biodiesel consumption to as much as 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.

"We hope the trials might be finished in December, so that full application of B40 could be brought out in 2025," energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the industry had the capability to meet B40 need, with anticipated to rise to 20 million KL yearly next year from 18 million KL now.

"However we will need more raw products to meet B40 need," 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 estimated 11 million loads needed this year, he included.

Indonesia's biggest palm oil association GAPKI said a decrease in exports implied there would suffice basic materials to provide the B40 required in the meantime.

But the industry would require to assess "which one would be more important", GAPKI chairman Eddy Martono said, describing the possibility a boost in exports would make supplying the domestic market less feasible.

Indonesia's palm oil output is estimated to reach 54.4 million tons in 2024, a 2.26% boost from in 2015, while exports are expected to decline by 2.47% to 29.5 million lots as domestic usage rose, driven by biodiesel mandate.

The ministry had actually tested the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while planning to check the B40 mix on agriculture machinery, power plants and in the shipping market, it said. (Reporting by Bernadette Christina and Dewi Kurniawati