Sabri Ahmad, chairman of the Malaysian Palm Oil Association, predicts that prices will leap from M$1,450 to between M$1,600-1,700 a tonne next year as biodiesel production grows.
“We are looking at 1.5 million tonnes of biodiesel in 2007,” he said, adding that 10 biodiesel plants are under construction with a further 10 proposed by the end of the year.
“Palm oil output in Malaysia, the world’s largest producer, is likely to rise to around 15.5 million tonnes this year from 14.9 million tonnes a year ago,” said Mr Sabri, who is also head of the palm oil company Golden Hope Plantations Bhd.
Goldenhope started Malaysia’s first commercial biodiesel plant, which has an annual capacity of around 35,000 tonnes, this month.
The company is to build two more biodiesel plants – one in Malaysia and the other in Holland. They are expected to be up and running in 2008 giving Goldenhope a biodiesel capacity of 390,000 tonnes.
