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 blended into biodiesel next year, the energy ministry said.
If carried out, the B40 required might increase biodiesel usage 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 ended up in December, so that complete implementation of B40 could be performed in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the industry had the capacity to fulfill B40 need, with installed capability anticipated to rise to 20 million KL every year 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 market would need 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million tons needed this year, he included.
Indonesia's most significant palm oil association GAPKI said a decrease in exports indicated there would be sufficient raw products to supply the B40 mandate 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 supplying the domestic market less viable.
Indonesia's palm oil output is to reach 54.4 million heaps in 2024, a 2.26% boost from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million loads as domestic consumption rose, driven by biodiesel mandate.
The ministry had actually tested the biodiesel, mixed with 40% of palm oil, on a train for the very first time earlier today, while preparing to check the B40 mix on farming equipment, 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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