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 testing fuel with a view to increasing to 40% from 35% the share of palm-oil combined into biodiesel next year, the.

JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil producer, 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 stated.


If implemented, the B40 required could increase biodiesel consumption to approximately 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.


"We hope the trials might be completed in December, so that complete implementation of B40 could be carried out in 2025," energy ministry senior official Eniya Listiani Dewi stated in a statement on Tuesday.


The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to meet B40 demand, with installed capability expected to rise to 20 million KL yearly next year from 18 million KL now.


"However we will need more raw materials to meet B40 demand," 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 required this year, he added.


Indonesia's greatest palm oil association GAPKI stated a decrease in exports implied there would suffice raw products to provide the B40 required for now.


But the market would need to assess "which one would be more important", GAPKI chairman Eddy Martono stated, describing the possibility a boost in exports would make supplying the domestic market less practical.


Indonesia's palm oil output is approximated to reach 54.4 million tons in 2024, a 2.26% boost from in 2015, while exports are expected to decline by 2.47% to 29.5 million loads as domestic consumption increased, driven by biodiesel required.


The ministry had actually evaluated the biodiesel, combined with 40% of palm oil, on a train for the very first time previously this week, while preparing to check the B40 mix on farming 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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