KUALA LUMPUR - MALAYSIA, the world's second-largest palm oil
producer, will make it mandatory for all vehicles to use biofuel
from next year, the government announced on Wednesday.
Malaysia's plans to shift to biofuel - a mixture of diesel with
five per cent processed palm oil - have been delayed over the past
few years due to price fluctuations. The plan will now be
implemented in stages in several central states from June 2011, the
Plantation Industries and Commodities Ministry said in a statement,
adding that the extra cost will be borne by petroleum
companies.
The policy 'will benefit the country as biofuel is
environmentally friendly and it will reduce our dependence on
petroleum diesel,' the ministry said. 'It will also strengthen the
palm oil prices and enable the planters, especially smallholders,
to benefit from the stronger palm oil price.'
The ministry said it will discuss the implementation mechanism
with petroleum companies, while the government will set up six
petroleum depots with blending facilities. The government has said
the switch to biofuel will help reduce the cost of fuel in
Malaysia, where petrol is subsidised, but conservationists have
criticised oil palm plantations for destroying wildlife
habitats.
Commodities Minister Bernard Dompok defended the move, although
he conceded the biofuel industry is facing 'increasing pressure
from negative public opinion on biofuels'. 'One of the challenges
is meeting the sustainability criteria that are being debated
worldwide,' the minister said in a separate statement.
'Many studies have shown that the use of biodiesel reduces
greenhouse gas emissions as compared to the use of petroleum
diesel,' he said. 'It is universally recognised that fossil fuel
reserves are finite and fast depleting. As such, renewable energy
sources need to be found to complement the needs of energy
requirements.'
-- AFP