Indonesia has started testing for two types of biodiesel containing 40% palm oil.
The government currently mandates that all diesel sold in the country must contain 30% palm oil, Reuters reported.
The world's largest producer of palm oil has long-term plans to boost vegetable oil concentration in fuel for everything from cars to aircraft, to be able to cut fuel imports.
The fuels to be tested over the next few months are diesel mixed with 40% fatty acid methyl esters (FAME), called B40, and B30D10, which is diesel with 30% FAME mixed with 10% green diesel made of refined, bleached and deodorized palm oil (RBDPO).
They will be tested on 12 of the most popular passenger car models and commercial vehicles over 50,000 km (31,000 miles) and 40,000 km, respectively, Dadan Kusdiana, the ministry's head of renewable energy said.
Efforts to increase FAME concentrations in biodiesel have faced resistance by users who complain that doing so requires special handling and equipment as the fuel has a solvent effect that can corrode engine seals and gasket materials, and it can solidify at cold temperatures.
Authorities had previously said B35 biodiesel would be sold to the public this month, but this has been delayed indefinitely.
The government expects at least 10.15 MM kiloliters of biodiesel to be consumed in 2022 and B40 is expected to increase total biodiesel consumption by up to 3.5 MM kiloliters per year.
Indonesia's current production capacity is at 18 MM kilolitres of biodiesel and 120,000 metric tons of green diesel.
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