Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
JAKARTA, July 24 (Reuters) – Indonesia, the world’s most significant palm oil producer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the energy ministry stated.
If implemented, the B40 required could increase biodiesel to as much as 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.
“We hope the trials might be finished in December, so that full execution of B40 could be brought out in 2025,” energy ministry senior main Eniya Listiani Dewi said 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 rise to 20 million KL yearly next year from 18 million KL now.
“However we will need more raw products to meet B40 demand,” Ernest Gunawan, the secretary general of APROBI told 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 tons needed this year, he added.
Indonesia’s most significant palm oil association GAPKI stated a decrease in exports indicated there would be sufficient raw products to provide the B40 required for now.
But the market would require to examine “which one would be more valuable”, GAPKI chairman Eddy Martono said, describing the possibility a boost in exports would make supplying the domestic market less practical.
Indonesia’s palm oil output is estimated to reach 54.4 million heaps in 2024, a 2.26% increase from in 2015, while exports are expected to decline by 2.47% to 29.5 million loads as domestic intake increased, 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 planning to evaluate the B40 mix on agriculture equipment, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D’Souza and Barbara Lewis)