Illustrative image (Source: https://www.thestar.com.my)

Hanoi (VNA)
- Malaysian biodiesel production is likely to hit record levels in 2018 and 2019, with 2018 exports on track to double from 2017, pushed up as higher oil prices boost the appeal of biofuels.

According to U.R Unnithan, president of the Malaysian Biodiesel Association, Malaysia is the world’s No. 2 producer of palm oil, which can be used as feedstock to make the bio components of biodiesel.

He said Malaysia can produce 900,000 tonnes of biodiesel, and export 475,000 tonnes of those if the current price difference between crude palm oil and gasoil remains.

Statistics of Malaysia show that the country churned out 720,410 tonnes of biodiesel in 2017 and exported 235,291 tonnes.

The country said in July that it would raise its biodiesel mandate next year to 10 per cent from the current 7 per cent. The mandate refers to the percentage of bio-content that must be contained in biodiesel.

If the government goes through with that plan and crude prices hold, Malaysia can produce up to 1.2 million tonnes of biodiesel in 2019.

Diesel’s premium over palm oil has widened in recent months amid stronger crude prices and weaker palm markets. Its spread over palm hit 219 USD per tonne in early October, the highest level in four years, and was around 178 USD/barrel on October 17.- VNA