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TEMPO.CO, Jakarta - Indonesia needs to expand its biodiesel production capacity by 4 million kilolitres to meet demand if the government expands the mandatory mix of biodiesel to 50%, producer group APROBI said on Thursday.
The country is the world's biggest palm oil producer and has increased its mandatory biodiesel blend to a 40% palm oil requirement, up from 35% previously, and is working to increase that blend to 50%, known as B50, next year.
Indonesia has about 19.6 million kilolitres of installed capacity for biodiesel production, APROBI Secretary General Ernest Gunawan told reporters. If the country implements the 50% blend, biodiesel demand is expected to increase to 19 million kilolitres per year, he said.
"We utilise, on average, 85% of the installed capacity because there are maintenance activities. We cannot run at 100% capacity," Gunawan said.
Biodiesel demand this year is estimated at 15.6 million kilolitres for the current 40% mix.
REUTERS
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