Wednesday, September 13, 2006

[Biodiesel News] Biodiesel still feasible fuel option: Minister

Biodiesel still feasible fuel option: Minister
Business Times - Malaysia - Malaysia
BIODIESEL is still a feasible investment in alternative fuels despite falling crude oil prices, Plantation Industries and Commodities Minister Datuk Peter Chin ...

BIODIESEL is still a feasible investment in alternative fuels despite falling crude oil prices, Plantation Industries and Commodities Minister Datuk Peter Chin says.

Crude oil prices have declined to about US$66 (RM242) per barrel from a record high of US$78.40 (RM288) on July 14.

One of the push factors often highlighted for biodiesel investments has been rising oil prices.

"The biodiesel business is not price-driven per se. In fact, investment in biodiesel is justified because crude palm oil (CPO) as feedstock is renewable and cleaner," Chin said.

"Many countries in the world are turning to biodiesel for fuel. Although crude oil prices have declined recently, we don't think crude oil producing countries would allow the price to drop as low as US$30 (RM110) per barrel," he told reporters after officiating at the Oils and Fats International Congress 2006 (OFIC 2006) in Kuala Lumpur yesterday.

In Malaysia, the biodiesel rush was so overwhelming that on June 29 the Government announced a freeze on new biodiesel manufacturing licences. It had already received 98 applications at the time.

"To date, 52 manufacturing licences have been approved, reflecting a great deal of interest in the investment of biodiesel," Chin said.

In his speech, the minister said the market potential for oils and fats remains promising considering the increase in population, income as well as per capita consumption.

"The industry should therefore review its practices and business strategies in the light of new demands, trends and intense competition in the global vegetable oil trade."

In 2005, the world trade of oils and fats amounted to 51 million tonnes, which comprised more than 17 major types of oils and fats.

Palm oil exports of 26.5 million tonnes accounted for 52 per cent, or the largest share in the oils and fats trade. Malaysia accounts for 51 per cent of the global palm oil exports and 26 per cent of the global oils and fats trade.

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Posted by Vince to Biodiesel News at 9/13/2006 06:00:00 AM

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