Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
Rubin Fouch edited this page 15 hours ago


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 combined into biodiesel next year, the energy ministry stated.

If carried out, the B40 required could increase biodiesel consumption to as much as 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated 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 main Eniya Listiani Dewi stated in a declaration on Tuesday.

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

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

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

Indonesia's most significant palm oil association GAPKI stated a decline in exports indicated there would be sufficient basic materials to provide the B40 required for now.

But the industry would require to assess "which one would be more valuable", GAPKI chairman Eddy Martono said, describing the possibility an increase in exports would make supplying the domestic market less viable.

Indonesia's palm oil output is estimated to reach 54.4 million loads in 2024, a 2.26% boost from last year, while exports are anticipated to decrease by 2.47% to 29.5 million tons 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 this week, while preparing to evaluate the B40 mix on farming equipment, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati