Biotech Updates

Malaysia Biofuels Report 2009

September 25, 2009
http://gain.fas.usda.gov/Recent%20GAIN%20Publications/General%20Report_Kuala%20Lumpur_Malaysia_6-12-2009.pdf

From the 2009 country biofuel reports of the Global Agricultural Information Network (GAIN) of the United States Department of Agriculture (USDA), some of the highlights of the biofuels situation in Malaysia are: (1) Malaysia's biofuel policies are hinged on its large and growing palm oil industry; the country is determined to promote the production and use of palm biodiesel; although the 2007 Biofuel Industry Act will allow the orderly development of the biodiesel industry, the mandatory blend of 5% biodiesel (B5) in regular diesel has been put on hold to address issues related to logistics and infrastructure, (2) There is no significant ethanol production industry in Malaysia, although there are (still largely untapped) opportunities for the utilization of palm oil biomass, (3) About 12 biodiesel plants have been completed, with a combined capacity of 1.5 million tons; the biodiesel output increased by only 5% in 2008 due to high feedstock prices, but a 30% jump in 2009 is expected, (4) EU concerns regarding the negative sustainability issues related to palm oil for biodiesel production "have raised fears of emerging barriers for palm oil biodiesel exports to the EU, (5) Jatropha is being seen as an alternative biodiesel source, and the government has allocated funds for research and development for crop development and performance tests; the impact of Jatropha on the biofuel sector is not seen to be significant within the next two years..