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Do you agree with new policy that reduces taxes for US producers of renewable chemicals?
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Biofuels International Conference 2013
11 September 2013 - 12 September 2013
Ramada Plaza, Antwerp, Belgium
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World Biofuels 2013
23 May 2013 - 24 May 2013
Seville, Spain |
ILTA
3 June 2013 - 5 June 2013
Houston, Texas |
21st European Biomass Conference and Exhibition
3 June 2013 - 7 June 2013
Copenhagen, Denmark |
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Volume 4, Issue 8
Feaure: Moving in the wrong direction? |
Biofuel production in southeast Asia has experienced a sudden drop in 2010. High palm oil prices and government failure in several countries to ensure biofuel consumption mandates are met have caused many biodiesel producers to suspend production rather than risk producing at a loss. The slump in profitability producing biofuel has come at a time when new production capacity is being added throughout southeast Asia. This is forcing owners of newly commissioned facilities to postpone starting up commercial production until market conditions and margins improve. Malaysia Malaysia, which is the world’s second largest palm oil producer after Indonesia, announced ambitious plans to become the global leader in biodiesel production as oil prices climbed to their eventual peak in mid-2008. The government has so far approved 56 licenses for biodiesel production which would create an annual production capacity of 6.8 million tonnes. However about 60% of the approved capacity has still to be built. Biofuel production plummeted this year due to cheaper crude oil prices and the higher cost of local palm oil supplies. According to the Malaysian Palm Oil Board, production of biodiesel containing a 5% blend of processed palm oil dropped from 12,640 tonnes in March to only 137 tonnes in July. Malaysia’s biofuels industry first ran into problems in late 2008 when the price of crude oil fell, causing a sharp drop in palm oil prices making palm oil supplies uncertain and threatening the long term contracts on which the biodiesel industry relies.
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