Asian governments want to promote the use of gasoline and diesel mixed with ethanol, palm oil and other vegetable oil to help lower oil import bills and cut pollution. Bio-fuels help stretch fossil fuel supplies when crude oil prices rise. Oil prices reached a record $70.85 a barrel on August 30.
The green energy story is here and now, Dorab E Mistry, director of Godrej International Ltd, one of Indias top five edible oils traders, said. In the next 12 months, bio-fuels will be a strong reality. Skeptics will be proven wrong as chunks of bio-fuel capacity come on-stream.
The Netherlands and other European countries ordered 17% more Malaysian palm oil in the first 10 months of the year from a year ago, for use in cooking and as an additive to auto-fuels, according to the Malaysian Palm Oil Association. The European Union requires biofuels to make up 5.75% of gasoline and diesel consumption in its member states by 2010.