Move to Boost Palm Oil-Based Biodiesel Output

THE government has disbursed RM1 million each to five petroleum companies to bolster the production of palm oil-based biodiesel.

The five oil majors are Petroliam Nasional Bhd (Petronas), Shell, Chevron, ExxonMobil and BHP.

Plantation Industries and Commodities Minister Tan Sri Bernard Dompok

said the money has been given out via the Malaysian Palm Oil Board so

that the oil giants can start to build new or upgrade existing biodiesel

facilities at their respective depots.

“I want this project to

start right away so that biodiesel can be sold to the public by June

2011,” Dompok told reporters in Kuala Lumpur yesterday after launching

the third International Palm Oil Trade Fair and Seminar.

He said the money can be spent on engaging a consultant, laying out pipes and valves systems and building storage tanks.

He said the biodiesel facilities will be built at existing oil depots

in the Klang Valley, Selangor, Negri Sembilan and Malacca, and will be

extended nationwide later on.

The location of the biodiesel

depots are the Klang Valley depot terminal (a joint venture between

Petronas, Exxon Mobil and Shell), Port Dickson terminal of which Shell

and Exxon Mobil each has one terminal, and Tangga Batu in Malacca owned

by Petronas.

Other locations are in Pulau Indah in Selangor

with terminals each owned by BHP and Chevron Malaysia producing the B5

biodiesel, which is a combination of 5 per cent oil palm and 95 per cent

fossil fuel-based diesel.

There are some 4.000 government

vehicles powered by biodiesel since February 2009, mainly owned by the

Armed Forces and City Hall.

Source : Business Times

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