JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, is testing 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 mandate might 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 finished in December, so that full application of B40 could be brought out in 2025," energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the industry had the capability to satisfy B40 demand, with set up capability expected to rise to 20 million KL each year next year from 18 million KL now.
"However we will need more raw products to satisfy B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel market would require 13.9 million metric tons of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps needed this year, he included.
Indonesia's greatest palm oil association GAPKI said a decrease in exports indicated there would suffice raw materials to provide the B40 mandate for now.
But the industry would need to evaluate "which one would be better", GAPKI chairman Eddy Martono said, referring to the possibility a boost in exports would make providing the less practical.
Indonesia's palm oil output is approximated to reach 54.4 million heaps in 2024, a 2.26% increase from last year, while exports are expected to decline by 2.47% to 29.5 million loads as domestic intake 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 check the B40 mix on agriculture equipment, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati
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Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
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