500,000 tonnes of palm oil needed yearly for proposed biofuel

(KPB PTPN): A TOTAL of 500,000 tonnes of palm oil will be needed each year to respond to the Government’s call to produce and use palm oil-based biofuel, Malaysia Palm Oil Association (MPOA) said.
This is because the fixing of the composition of the biofuel would comprise 5% processed palm oil biofuel and 95% diesel oil (B5 Blend).

MPOA chairman Datuk Sabri Ahmad said the mere 5% increase in the sale of palm oil would result in additional revenue of RM1bil in the industry.

“As many countries race towards reducing greenhouse gases by 5% relative to the 1990 level by 2008-2012, the demand for biofuel will increase tremendously,” he said in a statement yesterday.

Biodiesel is seen as a solution to the escalating price of fossil fuel and its inevitable depletion.

Yesterday, Prime Minister Datuk Seri Abdullah Ahmad Badawi announced a three-pronged plan under the National BioFuel Policy that would in many ways contribute to the nation’s economy as well as a healthier environment.

Sabri said besides boosting the local palm oil industry, the long-awaited policy would help reduce the country’s dependence on fossil fuel.

Biodiesel refers to chemically reacted vegetable oils to produce the methyl esters that have properties similar to petroleum-based diesel. It is made from rapeseed oil, soy oil, palm oil, sunflower and other edible oils.

Sabri said Malaysia’s move towards biofuel would also help stabilise the price of palm oil as proven in the case of other vegetable oils used in biodiesel, and that it could be the country’s first step towards becoming a main producer like Germany, France and Italy.

He hoped that the Government would consider providing incentives such as corporate tax rebates for palm oil producers to venture into the production of biofuel.– Bernama (mes)


Source : http://biz.thestar.com.my
Friday August 12, 2005