ID :
34941
Wed, 12/10/2008 - 19:10
Auther :

MANDATORY BIODIESEL FOR M'SIAN TRANSPORT & INDUSTRIAL SECTORS BY 2010

KUALA LUMPUR, Dec 10 (Bernama) -- Biodiesel will become mandatory for
Malaysian transport and industrial sectors by January 2010, Plantation
Industries and Commodities Minister Peter Chin Fah Kui said Wednesday.

He said that beginning February next year, government vehicles will
start using biodiesel with the Envo Diesel Esther (B5) brand, a blend of five
percent
palm oil and 95 percent diesel.

"It is expected that by 2010 an estimated 500,000 tonnes of palm-based
biodiesel will be needed to generate the industry needs," Chin said at a news
conference after the launch of B5 for diesel-powered vehicles at Kuala Lumpur
City Hall (DBKL).

He said B5 will be priced at RM1.95 (US$0.54)per litre, with the government
subsidising five sen per litre.

According to Chin, the B5 launch today marked another milestone in the
country's effort towards diversifying its fuel resources.

DBKL will require about 66 tonnes of palm-based biodiesel per year,
he said.

The minister also said that discussions are ongoing to determine whether
independent power producers are keen to use biodiesel.

To assist in the country's energy needs, the government has issued 91
licences for production of palm-based biodiesel with annual capacity of 10.2
million tonnes as at end-October 2008.

Chin said 12 biodiesel plants are currently operational with annual
capacity of 1.5 million tonnes.

"In addition, there are four plants with annual capacity of 190,000 tonnes
which have just been developed but at the preparation stage for commercial
production," he said.

Chin said palm-based biodiesel commercial production started in August 2006
and a major portion of the production was exported.

"From August 2006 to October 2008, 0.3 tonnes of palm-based biodiesel was
produced, in which as much as 0.29 tonnes had been marketed overseas with an
export value of RM889.36 million," he said.

The main importers of palm-based biodiesel were the United States, Europe
and Singapore, he added.
-- BERNAMA


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