JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil manufacturer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the energy ministry said.
If executed, the B40 required could 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 might be finished in December, so that complete execution of B40 might be carried out in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to fulfill B40 need, with set up capacity expected to increase to 20 million KL yearly next year from 18 million KL now.
"However we will need more basic materials to satisfy B40 demand," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel industry would need 13.9 million metric loads of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million lots required this year, he included.
Indonesia's biggest palm GAPKI said a decline in exports implied there would suffice raw materials to provide the B40 mandate in the meantime.
But the industry would need to examine "which one would be more valuable", GAPKI chairman Eddy Martono stated, describing the possibility an increase in exports would make providing the domestic market less viable.
Indonesia's palm oil output is estimated to reach 54.4 million heaps in 2024, a 2.26% increase from in 2015, while exports are expected to decline by 2.47% to 29.5 million lots as domestic intake rose, driven by biodiesel required.
The ministry had checked the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier this week, while planning to test the B40 mix on farming machinery, power plants and in the shipping market, it said. (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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