Indonesia sees 2024 biodiesel consumption rising to 11 MMt
(Reuters) - Indonesia's unblended biodiesel consumption in 2024 is seen rising to 11 - 11.4 MMt from 10.7 MMt last year, an energy ministry official said on Tuesday, leading to a possible fall in palm oil exports.
The Indonesia Palm Oil Association (GAPKI) had previously estimated that palm oil exports were expected to fall roughly 4% this year because of higher domestic demand for the vegetable oil as biodiesel feedstock while production growth remained modest.
The world's biggest palm oil producer and exporter has pushed a wide use of the palm oil-based fuel to reduce crude oil imports and shift to lower emission fuel.
"Biodiesel allocation for 2024 (is) set at 11.8 MMt. For realization, we hope around 1 -11.4 MMt," energy ministry official Edi Wibowo told an industry seminar.
The government has allocated 11.8 MMt of biodiesel for this year as the country rolls out its 35% palm oil blend for biodiesel, a program better known as B35.
GAPKI previously estimated Indonesia's palm oil output in 2024 would grow 4.9% annually to 55.8 MMt. Domestic consumption was expected to rise by 9% to 25.4 MMt, including 11.6 MMt for biodiesel feedstock.
Indonesia's biodiesel production rose to 11.6 MMt in 2023 from 10.3 MMt in the previous year, data from the Indonesia Biofuel Producer Association (APROBI) showed.
Meanwhile, exports stood at 165 MMt, down nearly half from 2022. The government said that biodiesel exports were hurt by restrictions imposed by importing countries.
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