Indonesia delays mandatory 35% palm oil biodiesel blending to Feb. 1
30/12/2022 (Hellenic Shipping News) - Indonesia will start its mandatory 35% palm oil biodiesel blending on Feb. 1, a month later than initially planned, the energy ministry said, without citing a reason.
Indonesia will maintain its mandatory 30% palm biodiesel blending, known as the B30 programme, throughout January, it said in a statement late Wednesday. The policy has been in place since 2020.
Indonesia earlier this month set an allocation of 13.15 million kilolitres palm based biodiesel to be consumed domestically next year under the B35 programme. It was unclear if the allocation would change.
The world’s biggest palm oil producer has been planning to increase the use of palm-based fuel to reduce crude oil and fuel imports and cut its green house gases emissions, while maintaining palm oil prices.
The government has been running road tests for biodiesel with 40% palm oil since July 2022. The tests are scheduled to be concluded by the end of this year.
The government had initially planned to implement B40, but opted instead for B35 after considering crude palm oil availability, biodiesel production capacity and fuel specification standards, the energy ministry’s director general of renewable energy Dadan Kusdiana said last week.