Malaysia is delaying the implimentation of a law demanding that 5% of diesel fuel sold in the country is made of a rewnewable source because of the increasing cost of palm oil, according to a report on Thompson Financial.
The report says:
The current high price of biofuel raw material, namely refined, bleached and deodorised palm olein, has made it unwise to implement the Act now, Malaysia’s Plantation Industries and Commodities Minister Peter Chin said.
“This has made the EnvoDiesel more expensive and unsuitable for commercial usage at the moment,” Chin was quoted as saying.
If a country like Malaysia cannot afford to use palm oil in biodisel, how will European biofuel producers expect to make a profit on biodiesl based around palm oil, once the cost of shipping, processing and factory depreciation is added to the equation. We are going to see a lot of invention, interms of other feed stock sources in the coming months.
Also it will be interesting to see whether Japan delays the aid it offered Malaysia to help it to develop palm oil as a biofuel in mid August.