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National Biofuel
The fast depletion of fossil fuels, coupled with the increasing awareness of environmental issues, concern for increasing green house gas emissions and escalating petroleum prices, have led to concerted efforts in the search for renewable and environmentally friendly alternative energy sources. Biofuel is one such fuel. In the global scene, especially on the European front, the use of methyl esters as diesel has achieved widespread acceptance. In fact, biodiesel made from rapeseed oil is already produced on a significant scale in Europe. The demand in the EU is projected to increase from 3 million tonnes in 2005 to 10 million tonnes in 2010. The United States, Brazil, India and Japan, have already embarked on their own biofuels programme, while other countries like Korea and Thailand have set specific targets for biofuels implementation.

As the world’s largest palm oil producer and exporter, Malaysia is now looked upon as the pioneer palm biofuel producer. Malaysia has embarked on a comprehensive palm biofuel programme since 1982 and has successfully established the use of palm methyl esters and the blend of processed palm oil (5%) with petroleum diesel (95%) as a suitable fuel for the transport and industrial sectors. Homegrown indigenous palm biodiesel production technologies, including winter palm biodiesel, have also been successfully developed. These products and technologies can be further developed for the world market. Formulation of the National Biofuel Policy would ensure healthy development of the biofuel industry, in line with the Five Fuels Diversification Policy.