Indonesia 2016 biodiesel output to miss target

In Indonesia, the widening price spread between palm oil biodiesel and fossil diesel may mean the country only reaches about a third of its planned B20 policy this year, about 2.5 million metric tons. With Malaysian palm oil futures at near two-year highs, the price difference between biodiesel and fossil diesel is around $300 per ton. Biodiesel consumption reached about 7.5% blending in 2015 at 1.5 million tons despite the policy mandating blending at 10% and then 15% before jumping to 20% in 2016.