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JAKARTA, July 24 (Reuters) - Indonesia, the world’s greatest palm oil manufacturer, is checking 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 executed, the B40 mandate might increase biodiesel usage to approximately 16 million kilolitres (KL) next year, the said, from 13 million KL estimated to be consumed in 2024.
We hope the trials could be ended up in December, so that complete application of B40 might be performed in 2025, energy ministry senior main Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the market had the capacity to fulfill B40 need, with set up capacity anticipated to increase to 20 million KL every year next year from 18 million KL now.
However we will need more raw products to fulfill B40 need, Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel market would need 13.9 million metric heaps of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million lots needed this year, he added.
Indonesia’s biggest palm oil association GAPKI said a decline in exports indicated there would suffice basic materials to supply the B40 required for now.
But the industry would require to evaluate which one would be more important, GAPKI chairman Eddy Martono said, describing the possibility a boost in exports would make supplying the domestic market less feasible.
Indonesia’s palm oil output is approximated to reach 54.4 million loads in 2024, a 2.26% boost from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million heaps as domestic usage rose, driven by biodiesel mandate.
The ministry had evaluated the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier today, while preparing to test 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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