YB Datuk Peter Chin Fah Kui

Malaysia launched Envo Diesel planned to introduce bio-diesel bill that will ensure diesel sold to contain a 5% blend of palm oil biofuel. At least 10 bio-diesel plants are being built with total investments estimated at RM300 million. Mission Biofuels from Australia to invest A$ 27 million to build bio-diesel plant in Kuantan with a capacity of 100,000 tonnes a year.

Illinios based Archer Daniels Midlands to build a USD 29 million bio-diesel plant.

The Indonesian government vowed recently to diversify its energy use away from the dominant fossil-based fuels to plant-based fuels such as bio-diesel, bio-ethanol, bio-oil and bio-gas. Research and Technology Minister Kusmayanto Kadiman said there were 60 plants with the potential to produce biofuels, ranging from cassava and sugarcane for bio-ethanol and castor oil, palm oil, sunflowers and soybeans for bio-diesel. Indonesia had potential to produce 720,000 kilolitres of biofuel per year between 2005 and 2010, 1.5 million KL per year over the five years after and 4.7 million KL per year over the following ten years up to 2025.

Thailand is building 3 bio-diesel plants under its “Biodiesel Action Plan”. Hundreds of stations are selling gasohol which contain 10% ethanol. The percentage is expected to increase to 20%. Tax breaks are granted to the sugar industry to produce ethanol.

The world’s third biggest biofuel producer, has produced gasohol – a mix of petrol and ethanol, the use of which is mandatory in some of its main farming prvinces. Farmers in the country have also expanded their production of wheat, corn, sugarcane, and potatoes to feed China ’s alcohol production plants.

The Government of India made doping of petrol with 5% ethanol mandatory in nine states and four union territories, following the success of pilot projects in Maharashtra and Uttar Pradesh. According to the Indian Sugar Mills Association, most Indian distilleries are currently producing less than 1.5 billion litres of alcohol against their production capacity of 3.2 billion litres. The mandatory use of 5% ethanol (with plans of increasing this to 10%) will improve the capacity utilization of the distilleries. The Indian government has one of the most developed biodiesel promotion programmes in the world, and is encouraging the planting of jatropha as a biodiesel feedstock.