JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil producer, 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 said.
If implemented, the B40 mandate might increase biodiesel intake to up to 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.
"We hope the trials might be finished in December, so that full application of B40 might be carried out in 2025," energy ministry senior main Eniya Listiani Dewi stated in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capability to fulfill B40 need, with set up capacity expected to increase to 20 million KL annually next year from 18 million KL now.
"However we will require more raw products to satisfy B40 demand," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel market would need 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps required this year, he added.
Indonesia's biggest palm oil association GAPKI stated a decline in exports suggested there would be sufficient raw materials to provide the B40 mandate for now.
But the industry would require to assess "which one would be better", GAPKI chairman Eddy Martono stated, referring to the possibility a boost 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 in 2015, while exports are expected to decrease by 2.47% to 29.5 million lots as domestic intake rose, driven by biodiesel mandate.
The ministry had checked the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while preparing to test the B40 mix on agriculture machinery, power plants and in the shipping industry, 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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