Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
JAKARTA, July 24 (Reuters) – Indonesia, the world’s greatest palm oil manufacturer, is evaluating 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 implemented, the B40 mandate might increase biodiesel consumption to as much as 16 million kilolitres (KL) next year, the ministry stated, from 13 million to be consumed in 2024.
“We hope the trials could be ended up in December, so that complete execution of B40 could be carried out 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 capability to fulfill B40 demand, with set up capability anticipated to rise to 20 million KL annually next year from 18 million KL now.
“However we will require more raw materials to satisfy B40 need,” 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 approximated 11 million tons required this year, he included.
Indonesia’s most significant palm oil association GAPKI stated a decline in exports suggested there would be enough raw materials to supply the B40 required for now.
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 providing the domestic market less viable.
Indonesia’s palm oil output is estimated to reach 54.4 million heaps in 2024, a 2.26% boost 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 actually evaluated the biodiesel, mixed with 40% of palm oil, on a train for the first time previously this week, while preparing to evaluate the B40 mix on agriculture machinery, 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)
