JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant 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 energy ministry stated.
If carried out, the B40 mandate might increase biodiesel usage to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.
"We hope the trials might be completed in December, so that full execution of B40 might be performed in 2025," energy ministry senior main Eniya Listiani Dewi stated in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the industry had the capability to meet B40 need, with set up capability anticipated to increase to 20 million KL each year 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 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 heaps required this year, he included.
Indonesia's most significant palm oil association GAPKI said a decline in exports meant there would suffice basic materials to supply the B40 required for now.
But the industry would need to assess "which one would be more valuable", GAPKI chairman Eddy Martono said, referring to the possibility an increase in exports would make providing the domestic market less feasible.
Indonesia's palm oil output is approximated to reach 54.4 million loads in 2024, a 2.26% increase from last year, while exports are to decline by 2.47% to 29.5 million tons as domestic usage rose, driven by biodiesel mandate.
The ministry had checked the biodiesel, mixed with 40% of palm oil, on a train for the very first time earlier today, while planning to evaluate the B40 mix on agriculture equipment, power plants and in the shipping industry, 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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