1. At the moment diesel sold has a 7% palm oil content and is called B7. The Malaysia government is looking at increasing the blend to B10 this year, meaning 10% of palm oil content in diesel.
2. In Indonesia, the government has taken an aggressive approach and is now adopting a B20 policy.
3. Indonesia's policy created an additional 3 million tonnes of demand in a year.
4. The successful implementation of the Indonesia’s Estates Crop Fund, set up by industry players there, has caused the country’s biodiesel production to increase from 1.7 million tonnes in 2015 to 3.3 million tonnes in 2016. The biodiesel consumption is expected to hit six million tonnes this year.
5. Countries like Colombia and Argentina have also advanced their biodiesel to B10 (10% palm oil methyl ester) while France and Brazil are currently mandating the use of B8 biodiesel.
MALAYSIA INVESTMENT
1. According Malaysian Palm Oil Board’s data, the total investments in the Malaysian biodiesel industry is estimated at RM2.2bil and world energy demand is predicted to rise by 30% by 2040.
2. The biodiesel industry in Malaysia has 17 biodiesel plants, with total installed capacity of 2.1 million tonnes.
3. About 80% of global energy comes from burning fossil fuels and 13.8% of the world’s primary energy supply comes from renewable energy.
CPO & PRICES AND PRODUCTION CAPACITY
1. CPO prices at RM3,300 per tonne were unsustainable, prices in the range of RM2,500 to RM2,600 were more sustainable in the longer term for CPO to be used in both food and fuel.
2. When CPO prices were at sustainable price levels, the industry could witness a steady increase in biodiesel usage.
3. When crude oil prices fell, the export market for biodiesel shrank and a lot of capacity went unutilised. Most industry players were operating at utilisation capacity of below 25%. At that level, it only covers variable costs but not fixed costs. If they ramp up capacity to nearly 100%, then this would enable them to make profits.
TECHNICAL SPECS & BENEFITS OF B7/B10
1. Among the properties of biodiesel is the fact that it has essentially been proven as an effective cleaning agent in the engine, increasing its longevity, just as it is a more environmentally-friendly fuel.
2. Biodiesel is a cleaner burning fuel, less toxic, reducing green gas emissions such as carbon monoxide, thus reducing the impact of global warming, and has a minimal to almost zero sulphur content. It is also regarded as a viable petroleum diesel substitute.
3. The properties of B10 biodiesel also inherit a higher cetane number which allows fuel to combust more easily and improves the lubricity of diesel for reduced wear and tear in the engine (low lubricity fuel is known to cause high wear and scarring of engine components).
4. In older diesel-powered vehicles, the use of pure diesel can cause significant sulfuric acid build up which quickly corrodes, thus requiring the engines to have more frequent oil changes. In newer vehicles, the common rail high-pressure direct-injection diesel engines are highly sensitive to high sulfuric levels and when sulphur levels are high, there is an increased frequency of repair and maintenance. In the case of B10 biodiesel, the lower sulphur content will reduce the risk of corrosive wear in the engine without inhibiting engine performance.
(Source: motortrade, thestar)
