Malaysia: biodiesel output, exports set to hit records
Malaysian biodiesel production is likely to hit record levels in 2018 and 2019, with 2018 exports on track to double from 2017, pushed up as higher oil prices boost the appeal of biofuels.
Hanoi (VNA) - Malaysian biodiesel productionis likely to hit record levels in 2018 and 2019, with 2018 exports on track todouble from 2017, pushed up as higher oil prices boost the appeal of biofuels.
According to U.R Unnithan, president of the Malaysian BiodieselAssociation, Malaysia is theworld’s No. 2 producer of palm oil, which can be used as feedstock to make thebio components of biodiesel.
He saidMalaysia can produce 900,000 tonnes of biodiesel, and export 475,000 tonnes of thoseif the current price difference between crude palm oil and gasoil remains.
Statistics of Malaysia show that the country churned out 720,410 tonnes ofbiodiesel in 2017 and exported 235,291 tonnes.
The countrysaid in July that it would raise its biodiesel mandate next year to 10 per centfrom the current 7 per cent. The mandate refers to the percentage ofbio-content that must be contained in biodiesel.
If the government goes through with that planand crude prices hold, Malaysia can produce up to 1.2 million tonnes ofbiodiesel in 2019.
Diesel’s premium over palm oil has widened inrecent months amid stronger crude prices and weaker palm markets. Its spreadover palm hit 219 USD per tonne in early October, the highest level in fouryears, and was around 178 USD/barrel on October 17.- VNA
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Illustrative image (Source: //www.thestar.com.my) 
