Indonesia’s B50 mandate comes into effect, expanding the use of biodiesel.

Indonesia began implementing the mandatory B50 mandate on Wednesday (1st), raising the share of palm oil-based biodiesel in the blend with conventional diesel to 50%. The measure is part of the government's strategy to increase the country's energy independence, replacing the previous B40 mandate. Despite the new rule coming into effect, the program faces challenges to economic viability. Falling international oil prices and high palm oil prices reduce the competitiveness of the biofuel. "The implementation of B50 is proceeding in accordance with applicable regulations," said Noor Arifin Muhammad, representative of the Indonesian Ministry of Energy. Although the government established a three-month transition period, as per a decree published in June, for distributors and service stations to resell remaining B40 stocks, producers are already supplying the higher-content renewable diesel for the new blend.

This text was translated by machine from Brazilian Portuguese.