PALM OIL POTENTIALLY STRONG TO EMERGE AS MAJOR BIOFUEL IF CRUDE PRICES SURGE

By Wan Nor Azura

KUALA LUMPUR, March 11 (Bernama) -- Crude palm oil, along with other edible
vegetable oils, has a strong potential to emerge as a major biofuel if
petroleum prices increase exhorbitantly, Chief Executive of the Malaysian Palm
Oil Council (MPOC) Dr Yusof Basiron said Thursday.

He said if crude oil prices remained cheap against a backdrop of high
petroleum prices, then the edible oil would be an excellent alternative source
of biodiesel.

"We have a biodiesel policy that the government initiated sometime ago,
which among others, aimed at encouraging biodiesel for export.

"But Malaysia cannot rush into the implementation of the programme as
petroleum companies in the country are not ready with the blending equipment to
produce biodiesel," he told reporters after a roundtable discussion on the palm
oil industry organised by Bernama.

He said it would take more than 12 months for plants to install the
necessary facilities to produce biodiesel.

"That is why we are taking this slowly.

"Petroleum companies need to prepare thier blending process and equipment
first," he added.

Asked on petroluem prices which would encourage the market to favour
alternative fuels, he said the market would be comfortable when oil prices range
between US$80 and US$90 a barrel while crude palm oil fetch between RM2,600 and
RM3,200 per tonne.

-- BERNAMA