Biodiesel can facilitate crude palm oil positive sales growth

Biodiesel can facilitate crude palm oil positive sales growth

A noticeable drop in crude palm oil prices highlighted an absolute necessity to act immediately by applying satisfactory solutions otherwise, if prices for CPO slump further there’s a risk of a downtown in its trading performance.

Taking into account the current situation, the Malaysian Biodiesel Association insists on adopting of the B10 biodiesel mandate. Implantation of the B10 biodiesel standard is a method having the potential to help set crude palm oil in go up in price and thus trade above 2,000 ringgit per tonne.

U. R. Unnithan, the associative deputy president claims that putting Biodiesel 10 mandate into action signifies improving the flow of trading operations of CPO and cutting down on the surplus of its stock. To make it more concrete, he estimates that every 100 ringgit increase per tonne in CPO would bring 2 billion ringgit to the country’s gross domestic product.

Biodiesel 10 mandate implantation would be one of the most significant change in recent times, it would enable the Malaysian Biodiesel Association 21 members to work at full capacity which, in its turn implies the productivity of 2,7 million tonnes of biodiesel using CPO stock to a maximum. Besides, in the future Biodiesel’s programs are supposed to profit a sum of 4, 6 billion ringgit and 34,6 billion ringgit respectively to the country’s CDP.

In an attempt to cope with CPO price fall and in order to make vast improvements to the economy, the Malaysian Biodiesel Association sees also to adopting Biodiesel 20 standards. Biodiesel 20 can increase the capacity by 75% as it contains 20% of palm oil methyl ester. Which appears quite reasonable regarding the current situation.

Another concern number one is a necessity to suggest a higher blend of biodiesel with high- grade diesel. Due to the fact that government proceeds to making use of Euro 5 containing too much sulphur which reduces diesel lubricity and therefore may lead to disastrous consequences for engines and pumps operability. It is crucial to understand here that a blend of biodiesel with high-grade diesel is better for appliances and will consequently reduce diesel retail price by saving expenses on lubricity additives.