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 manufacturer, is checking 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 executed, the B40 mandate could increase biodiesel usage 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 ended up in December, so that full application of B40 could be carried out in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the industry had the capability to satisfy B40 demand, with installed capability anticipated to increase to 20 million KL every year next year from 18 million KL now.

"However we will need more basic materials to meet B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.

The biodiesel industry would need 13.9 million metric heaps of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million tons needed this year, he included.

Indonesia's most significant palm oil association GAPKI said a decrease in exports indicated there would be adequate basic materials to provide the B40 required in the meantime.

But the industry would need to evaluate "which one would be more important", GAPKI chairman Eddy Martono said, referring to the possibility a boost in exports would make supplying the domestic market less feasible.

Indonesia's palm oil output is approximated to reach 54.4 million heaps in 2024, a 2.26% boost from last year, while exports are expected to decrease by 2.47% to 29.5 million heaps as domestic intake increased, driven by biodiesel mandate.

The ministry had actually evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while preparing to evaluate the B40 mix on farming equipment, power plants and in the shipping market, it stated. (Reporting by and Dewi Kurniawati