Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025 > 자유게시판

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JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil manufacturer, 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 carried out, the B40 mandate might intake 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 could be ended up in December, so that full application of B40 could be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the market had the capacity to fulfill B40 demand, with set up capacity expected to rise to 20 million KL each year next year from 18 million KL now.

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

The biodiesel market would need 13.9 million metric heaps of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million lots needed this year, he added.

Indonesia's most significant palm oil association GAPKI stated a decrease in exports meant there would be enough basic materials to supply the B40 mandate in the meantime.

But the industry would need to evaluate "which one would be more valuable", GAPKI chairman Eddy Martono stated, referring to the possibility an increase in exports would make providing the domestic market less practical.

Indonesia's palm oil output is approximated to reach 54.4 million loads in 2024, a 2.26% increase from last year, while exports are anticipated to decline by 2.47% to 29.5 million heaps as domestic consumption rose, driven by biodiesel mandate.

The ministry had actually checked the biodiesel, combined with 40% of palm oil, on a train for the very first time previously this week, while preparing to test the B40 mix on agriculture machinery, 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)