Malaysia, Indonesia Will Pump Out 40% More Palm Oil Biodiesel
Malaysia and Indonesia decided this week to convert surpluses of edible palm oil into biodiesel fuel.
Currently, the two southeast Asian countries grow about 85% of the world’s palm oil and control 88% of all palm oil exports. But amid stalled plans for more production plants and a slowing demand for palm oil, the countries are beginning to worry.
The proposal to turn so much food to fuel comes as an attempt to increase demand for palm biodiesel and drive up prices. In 2007, palm oil biodiesel prices made a dizzying 80% jump to over $944 per tonne. However, when prices hit today’s price of $871 per tonne lags just below prices seven months ago.
