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November, 2008
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Biodiesel - an energy alternative??
Crude palm oil or CPO for short are mainly produced by Asian countries like Indonesia, Malaysia and India. Recently in the 2007 and 2008, there are much talk about using biodiesel as an alternative to the fuel. I remember of even seeing an advertisement on the TV showing a car ran out of gas in the middle of the palm oil plantation in Malaysia. Out of sudden, there is a guy offering biodisel fuel to the car from the "palm oil tree". I know it's funny. But how reliable and practical for this alternative fuel. I think with the rising crude oil passing $147 per barrel last few months are causing much worry to all nations especially developed and developing countries like USA, Japan or even China. Here is what I think of biodiesel from crude palm oil. 1) At present level of RM3,000++ per tonne of crude palm oil, it is just too expensive to produce biodiesel. 2) The energy output from the palm oil are not as good as from crude oil. 3) Palm oil are more suitable for as edible oil and its major comeptitor is soy oil. 4) However, with the present downtrend for palm oil, the prices per tonne might drop to a level that might induce more interest from companies to develop solutions for providing alternative energy for transportation.
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Contributor's Note
You may visit my site at http://TradeOrInvest.com/ to learn more of the price projection for crude palm oil.
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Added by TradeOrInvest.com on July 31, 4:40 AM.
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Palm oil is a major contributor of deforestation in Asian countries as huge tracts of rainforest are torn down to plant the trees. The plantations are then often left as the oil companies take the government money subsidy to plant the trees then abandon the plantations, leaving great desolation.
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