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 checking fuel with a view to increasing to 40% from 35% the share of palm-oil mixed into biodiesel next year, the.

JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil producer, is evaluating 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 up to 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 ended up in December, so that complete application of B40 could be performed in 2025," energy ministry senior main Eniya Listiani Dewi stated in a declaration on Tuesday.


The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capacity to meet B40 need, with installed capacity 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 told Reuters on Wednesday.


The biodiesel industry would require 13.9 million metric heaps of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million lots required this year, he added.


Indonesia's biggest palm oil association GAPKI stated a decline in exports indicated there would suffice raw materials to supply the B40 required in the meantime.


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


Indonesia's palm oil output is approximated to reach 54.4 million tons in 2024, a 2.26% boost from in 2015, while exports are expected to decrease by 2.47% to 29.5 million tons as domestic consumption 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 this week, while preparing to test the B40 mix on agriculture machinery, power plants and in the shipping industry, 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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