11/02/2009 (Daily Express, Malaysia), Tawau - Malaysia Palm Oil Board (MPOB) Director General Datuk Dr Mohd Basri Wahid admits it is struggling to carry out the biodiesel (B5) scheme nationwide.

But he is adamant the scheme will be implemented step by step, and expects all government diesel vehicles to use biodiesel completely by the middle of next year.

He said there were 36 depots throughout the country and a series of observations and discussions should be conducted before the biodiesel scheme could be carried out at each depot.

The board has also identified several agencies that are having many depots such as the Public Works Department (PWD) and Defence Department for the scheme, he said.

"The biodiesel scheme was launched in the Klang Valley Distribution Terminal, Kuala Lumpur, on February 3. It was a starting point for the scheme and it will be carried out in such way," Mohd Basri told the media after launching the new MPOB building here, Tuesday.

He said there were many issues like facilities and cost that should be observed before the scheme could be carried out at each depot.

The Petrol Shell (PS) Terminal at Tanjung Batu here have the potential to carry out such scheme within two months due to its extra space, he pointed out.

He added that 10 new palm oil factories in Sabah still under construction, five of them are in Tawau.

Vehicles of the Defence Ministry and Public Works Department (PWD) here are to use biodiesel fuel or B5 in April.

He said 3,900 vehicles of the Defence Ministry and the Kuala Lumpur City Hall are now fully using biodiesel since the trial period started on Feb 13 last year. The industrial sector is expected to use biodiesel in June while the transportation sector in early next year.

He said the use of biodiesel as fuel is to reduce over-supply of palm oil and to stabilise palm oil prices in the market.

"When vehicles and the industrial sector fully use biodiesel, the palm oil stock can be reduced up to 500,000 tonnes a year," he added.

 11/02/2009 (Daily Express, Malaysia), Kuala Lumpur - Usage of the mandatory blending of five percent palm oil with diesel (B5) will be fully implemented by 2010, according to Plantation Industries and Commodities Minister Datuk Peter Chin.

The government has approved B5 in the local transport and industrial sectors and it will be phased in to the domestic fuel market starting with government vehicles, he said.

The incentive is set to create demand for an additional 500,000 tonnes of palm oil locally which will be needed to produce palm biodiesel, Chin told Oxford Business Group.

"By increasing demand, palm oil stocks will be used in Malaysia, at a time when uncertainty in the global markets has raised doubts about how export of palm oil will fare this year," he said.

This, he added, is one of the measures that the ministry, together with agencies under its umbrella, has put into practice.

The Malaysian Palm Oil Board (MPOB) and Malaysian Palm Oil Council (MPOC) both promote palm oil and its products overseas while also providing technical support and information about palm oil products.

Chin said the ministry would continue to monitor developments of biodiesel in major markets overseas.

He also recognised the importance of promoting sustainable development and giving weight to environmental issues.

"The MPOB developed codes of practice for the oil palm industry following consultation with key players in the industry," he said.

The government is also looking at ways of reducing environmental pollution and contamination, with discussions increasingly focusing on the use of clean development mechanisms and reducing green house gases.

Chin said the codes of practice have been used to form the basis of a sustainability manual which is set to be completed by June this year.

The manual will serve as a point of reference for sustainable practices in the oil palm industry, he said.

In the current economic climate, it is in the companies' interest to consider ways of reducing costs and improving competitiveness, according to Chin.

The recent merger of Sime Darby, Golden Hope and Guthrie, and also Wilmar International and PPB Oil Palm Group are examples of how companies could work together to meet challenges in the world market, he said.

Oxford Business Group is coming out with "The Report: Malaysia 2009", the latest of its annual business guides, with comprehensive review of the country's economy.- Bernama

The oil palm tree (Elaeis guineensis jacq.) originates from West Africa where it has long been recognize as a source for cooking oil. The oil parts derived from the fruit and kernel (seed) of the plant. A good thing with palm oil is the all year production capacity compared to seasoned oilseeds such as soy oil and rapeseed.