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Rise to FAME: Increased Indonesian biodiesel capacity could support exports

07 February 2020

Asia’s biodiesel production growth to be led by Indonesia

The Indonesian Biofuel Producers Association (APROBI) is expecting an additional 3.2 million mt of fatty acid methyl ester (FAME) production capacity to come online this year, and another 3.2 million mt in 2021. (Reuters) The country presently has more than 10 million mt of FAME capacity. With Indonesia expanding its biodiesel mandate, and rolling out B30 at the start of this year, the additional production capacity could fulfil domestic demand and support future exports. Indonesia exported around 1.1 million mt of FAME from January to November 2019, with more than half the volume headed to China and about one-third to Spain. Eastport Research & Strategy is projecting an increase in Asia’s biodiesel production to more than 17 million mt by 2024. For more information, please see our Biodiesel 5-Year Shipping Outlook entitled FAME & Fortune: Rising demand for biodiesel tonnage as Asia/Europe cargos continue to grow.

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