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 biggest palm oil manufacturer, 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 executed, the B40 required might increase biodiesel usage to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.


"We hope the trials could be finished in December, so that complete execution of B40 could 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 satisfy B40 demand, with installed capacity anticipated to increase to 20 million KL annually 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 crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million tons required this year, he included.


Indonesia's biggest palm oil association GAPKI said a decrease in exports indicated there would suffice raw products 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, referring to the possibility an increase in exports would make supplying 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 in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million lots as domestic usage increased, driven by biodiesel required.


The ministry had checked the biodiesel, blended with 40% of palm oil, on a train for the first time earlier today, while preparing to check the B40 mix on agriculture machinery, power plants and in the shipping market, 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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