JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest 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 said.
If implemented, the B40 mandate 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 completed 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 satisfy B40 need, with installed capacity anticipated to increase to 20 million KL annually next year from 18 million KL now.
"However we will require more raw products to meet B40 demand," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel industry would require 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million heaps needed this year, he included.
Indonesia's biggest palm oil association GAPKI stated a decrease in exports meant there would be enough raw products to supply the B40 required for now.
But the market would need to examine "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 feasible.
Indonesia's palm oil output is estimated to reach 54.4 million lots in 2024, a 2.26% boost from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million tons as domestic consumption 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 previously this week, while planning to test the B40 mix on agriculture 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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