Asian biofuels reaching new heights

Nurul Darni, Asia biofuels editor, Argus Media, is contributing in our September/October issue and will be speaking at this year's Tank Storage Asia on the 24th – 25th September, in Marina Bay Sands, Singapore.

In our upcoming issue, Darni takes a look at recent biodiesel and ethanol developments taking place in Asia.

By 2030, Biofuels will account for up to 14% of the total transport fuel mix in Asia, providing the rapid expansion of high-yielding, first generation biofuels crops, and the commercialisation and scale up of cellulosic biofuels production from agricultural residues, takes place.

In Indonesia, the Energy and Mineral Resources Ministerial Decree is looking to raise the biofuel blending to 10%, increasing the consumption to 3.5 million kl per year. By improving its productivity, Indonesia could save over half of its biodiesel imports. The nation stipulates that the additional biodiesel created by the new mandate must be met by domestic supplies.

The ethanol market in Asia is experiencing a change. The Brazilian ethanol blending levels have increased from 20% to 25%, and with the US in recovery-mode following its drought last year, Asian ethanol prices will continue to be in accordance with global arbitrage. Despite high import tariffs in countries such as The Philippines, a shortage of ethanol in Asia increases the likelihood of supplies from the US.

With new ethanol plants cropping up in Asia and global supplies look for new markets, the region is experiencing a shot at the limelight.