Palm Oil-based biodiesel the next fuel boom

Uggah showing a palm oil product during a visit to an exhibition booth at POMREQ. At left is Dr Choo. — Bernama Photo

KUCHING: The B7 Biodiesel Programme for the transport sector will be implemented in Sarawak and Sabah next month.

Minister of Plantation Industries and Commodities Datuk Amar Douglas Uggah said the government was waiting for the blending plants to put the finishing touches to this environmentally-friendly fuel – a blend of seven per cent palm biodiesel and 93 per cent petroleum diesel.

The fuel has lower greenhouse gas emissions than diesel, he added.

“The refinery that produced biodiesel for Sarawak has informed us this morning (yesterday) that the B7 Biodiesel will be ready by next month,” he told a press conference after opening the National Seminar on Palm Oil Milling, Refining, Environment and Quality (POMREQ) here yesterday.

The B7 Biodiesel was introduced in Peninsular Malaysia on Nov 1. The programme will be mandatory for the subsidised sector, while all petrol stations will offer B7 Biodiesel in place of the B5 Biodiesel currently being sold.

Uggah said the B7 Programme for the industrial sector would be implemented early next year.

Upon full implementation, B7 will utilise 700,000 tonnes of palm oil annually, thus further strengthening palm oil price.

In his speech, Uggah said palm oil biodiesel implementation was one of the initiatives taken by the government to mitigate the slide in crude palm oil (CPO) price caused by oversupply of vegetable oils.

Another prompt action taken was to remove the export duty for CPO for September and October, and subsequently extended to the months of November to December this year.

“This, I believe has helped check the downward price trend by almost RM200 per tonne. For every RM100 increase in price, the additional revenue from palm oil exports for the industry is about RM2 billion a year.

“It is thus a strategic decision by the government to forego export tax revenue so that the industry, particularly the smallholders, can obtain better prices for the commodity.”

Among those present at the ceremony were Malaysian Palm Oil Board (MPOB) director- general Datuk Dr Choo Yuen May and Plantation Industries and Commodities Ministry (Palm Oil and Sago Industry Unit) secretary Aknan Ehtook.

Read more: http://www.theborneopost.com/2014/11/04/b7-biodiesel-available-next-month/#ixzz3P7uMDZ6c