Indonesia and Malaysia are currently in discussions with China to expand the use of palm oil in the world's second-biggest economy through palm-enriched biodiesel, Malaysia's minister of plantations industries and commodities said on Wednesday (23/08).(Reuters Photo)

Malaysia, Indonesia in Talks With China to Expand Palm Oil Use in Biodiesel: Malaysia Minister

BY :EMILY CHOW

AUGUST 23, 2017

Kuala Lumpur. Indonesia and Malaysia are currently in discussions with China to expand the use of palm oil in the world's second-biggest economy through palm-enriched biodiesel, Malaysia's minister of plantations industries and commodities said on Wednesday (23/08).

Mah Siew Keong said at a news conference in the Malaysian capital that China, also the world's second-largest palm oil buyer, is looking into the possibility of implementing a requirement that biodiesel should contain a minimum of 5 percent of palm oil, a mandate known as 'B5'.

"Malaysia and Indonesia will make a joint effort to discuss with China," said Mah, adding that the two countries also want to play a part in expanding the biodiesel market in India.

Mah did not disclose the precise nature of the discussions, a timetable for their conclusion, nor indicate how much more palm oil China would consume with a 'B5' mandate. It wasn't immediately clear how seriously China is reviewing the matter.

Malaysia and Indonesia jointly produce about 85 percent of the world's palm oil. Malaysia currently has a 'B7' biodiesel mandate while Indonesia is at 'B20'.

The two countries have been looking at alternative markets to offload palm oil supplies following a call by European Union lawmakers in April to curb imports of the tropical oil.

Reuters

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KEYWORDS :
palm oil biodiesel

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