RIA

Mission Biofuels India Private Ltd

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  • Founded Date June 6, 1978
  • Sectors Agro / Plant breeding
  • Posted Jobs 0
  • Viewed 5

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Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025

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 blended into biodiesel next year, the energy ministry said.

If carried out, the B40 required might increase biodiesel consumption to as much as 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 ended up in December, so that full implementation of B40 might be carried out in 2025,” energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capacity to fulfill B40 demand, with set up capacity anticipated to increase to 20 million KL each year next year from 18 million KL now.

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

The biodiesel market would require 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million lots needed this year, he included.

Indonesia’s greatest palm oil association GAPKI stated a decline in exports meant there would suffice basic materials to provide the B40 required for now.

But the market would require to examine “which one would be better”, GAPKI chairman Eddy Martono said, to 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 tons 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 rose, driven by biodiesel required.

The ministry had checked the biodiesel, blended with 40% of palm oil, on a train for the first time earlier today, while preparing to evaluate the B40 mix on farming equipment, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D’Souza and Barbara Lewis)

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