Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025

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JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil manufacturer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil combined into biodiesel.

JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil manufacturer, is evaluating fuel with a view to increasing to 40% from 35% the share of palm-oil mixed into biodiesel next year, the energy ministry said.


If carried out, the B40 required might increase biodiesel intake 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 full application 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) stated the market had the capacity to fulfill B40 need, with installed capacity expected to increase to 20 million KL yearly next year from 18 million KL now.


"However we will require more basic materials to fulfill B40 demand," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.


The biodiesel industry would need 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million loads required this year, he included.


Indonesia's greatest palm oil association GAPKI stated a decline in exports suggested there would suffice basic materials to provide the B40 required in the meantime.


But the market would need to assess "which one would be better", GAPKI chairman Eddy Martono stated, describing the possibility an increase in exports would make supplying the domestic market less feasible.


Indonesia's palm oil output is approximated to reach 54.4 million lots in 2024, a 2.26% boost from last year, while exports are anticipated to decrease by 2.47% to 29.5 million loads as domestic usage increased, driven by biodiesel required.


The ministry had actually tested the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while planning to test the B40 mix on agriculture equipment, power plants and in the shipping industry, 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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