Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025

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JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil producer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the.

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 could increase biodiesel consumption to up to 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated to be consumed in 2024.


"We hope the trials could be ended up in December, so that full application 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) stated the industry had the capacity to satisfy B40 demand, with set up capacity anticipated to increase to 20 million KL annually next year from 18 million KL now.


"However we will require more basic materials to satisfy B40 need," Ernest Gunawan, the secretary general of APROBI informed 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 estimated 11 million heaps needed this year, he added.


Indonesia's greatest palm oil association GAPKI said a decrease in exports suggested there would suffice raw products to supply the B40 required in the meantime.


But the industry would need to examine "which one would be more valuable", GAPKI chairman Eddy Martono stated, referring to the possibility a boost in exports would make supplying the domestic market less viable.


Indonesia's palm oil output is approximated to reach 54.4 million tons in 2024, a 2.26% increase from in 2015, while exports are anticipated to decline by 2.47% to 29.5 million heaps as domestic intake rose, driven by biodiesel required.


The ministry had actually evaluated the biodiesel, combined with 40% of palm oil, on a train for the first time earlier this week, while preparing to evaluate the B40 mix on agriculture equipment, power plants and in the shipping industry, it stated. (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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