Indonesia's government plans to expand biodiesel subsidies to cover consumption of palm oil-blended fuels by the mining sector this year as part of ambitious plans to develop the energy source, an energy ministry official said on Thursday (04/01). (Antara Photo/Oky Lukmansyah)
Malaysia, Indonesia Biodiesel Production Forecast to Rise in 2017
BY :EMILY CHOW
MARCH 07, 2017
Kuala Lumpur. Malaysia will produce about 900,000 metric ton of biodiesel in 2017, up about 80 percent from half a million metric ton last year, while Indonesian output will rise to 3.5 million metric tons this year from 3 million metric tons in 2016, an industry expert said on Tuesday (07/03).
"These are the forecasts based on the current pricing of crude palm oil and oil prices," said U.R. Unnithan, president of the Malaysian Biodiesel Association on the sidelines of a palm oil industry conference in Kuala Lumpur.
Benchmark palm oil prices are up nearly 3 percent so far this month after sliding 8.5 percent on expectations of rising output and weakening demand in February.
Palm oil is down 1.5 percent at 2,851 ringgit ($640.94) per metric ton on Tuesday evening.
Palm oil can be used to produce the bio components of biodiesel grades sold at retail fuel pumps. Low crude oil prices, though — benchmark crudes are still around half of what they were in mid-2014 — are expected to make it tougher for biodiesel to compete against petroleum diesel.