JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil producer, 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 carried out, the B40 required could increase biodiesel intake to approximately 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.
"We hope the trials could be completed in December, so that complete execution of B40 could be brought out in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the industry had the capacity to meet B40 need, with installed capability anticipated to increase to 20 million KL annually next year from 18 million KL now.
"However we will require more raw materials to meet B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel market would need 13.9 million metric loads of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million loads needed this year, he added.
Indonesia's greatest palm oil association GAPKI stated a decline in exports meant there would be adequate basic materials to provide the B40 required in the meantime.
But the industry would require to assess "which one would be better", GAPKI chairman Eddy Martono stated, referring to 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 loads in 2024, a 2.26% increase from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million loads as domestic intake rose, driven by biodiesel required.
The ministry had checked the biodiesel, blended with 40% of palm oil, on a train for the very first time previously today, while preparing to test the B40 mix on agriculture equipment, power plants and in the shipping industry, it said. ( by Bernadette Christina and Dewi Kurniawati
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Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
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