JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil combined into biodiesel next year, the energy ministry said.
If carried out, the B40 required could increase biodiesel consumption to as much as 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.
"We hope the trials could be finished in December, so that full application of B40 might be performed in 2025," energy ministry senior main Eniya Listiani Dewi stated in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to satisfy B40 demand, with installed capacity anticipated to increase to 20 million KL annually next year from 18 million KL now.
"However we will require more basic materials to meet B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel industry would require 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps needed this year, he added.
Indonesia's biggest palm oil association GAPKI stated a decrease in exports implied there would suffice basic materials to provide the B40 mandate in the meantime.
But the market would require to assess "which one would be better", GAPKI chairman Eddy Martono stated, describing the possibility an increase in exports would make providing the domestic market less feasible.
Indonesia's palm oil output is estimated to reach 54.4 million heaps in 2024, a 2.26% boost from last year, while exports are anticipated to decline by 2.47% to 29.5 million loads as domestic intake rose, driven by biodiesel mandate.
The ministry had actually evaluated the biodiesel, blended with 40% of palm oil, on a train for the first time previously this week, while planning to check the B40 mix on farming equipment, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)