Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025

Comments · 10 Views

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

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


If carried out, the B40 required could increase biodiesel intake 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 completed in December, so that complete implementation of B40 could be performed in 2025," energy ministry senior official Eniya Listiani Dewi stated in a statement on Tuesday.


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


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


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


Indonesia's biggest palm oil association GAPKI said a decrease in exports suggested there would be sufficient raw materials to provide the B40 mandate for now.


But the industry would need to examine "which one would be more important", 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 estimated to reach 54.4 million heaps in 2024, a 2.26% boost from in 2015, while exports are anticipated to decline by 2.47% to 29.5 million heaps as domestic usage increased, driven by biodiesel required.


The ministry had tested 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 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)

Comments