5 Mar 2019 (The Edge Markets MY) KUALA LUMPUR : The Malaysian and Indonesian palm-based biodiesel industry can expect to see some positive growth this year following the decision of both Governments to boost consumption of the biofuel.

Malaysian Biodiesel Association president UR Unnithan said biodiesel is now an integral and important part of the palm biodiesel mandates in both Malaysia and Indonesia and the consumption increase would support crude palm oil prices.

He said Indonesia would be transitioning from B20 (20 percent biodiesel) to B30 biodiesel by next year which could increase palm-based biodiesel consumption by up to three million tonnes, depending on the effectiveness of the implementation.

“Malaysia is also planning to switch from B10 to B20 biodiesel next year, which could double the total volume of palm-based biodiesel consumption,” he told reporters on the sidelines of the Palm and Lauric Oils Pric Outlook Conference & Exhibition 2019(POC 2019), here today.

Unnithan said both the Indonesian and Malaysian palm-based biodiesel mandates would have a significant effect on the total usage of palm oil, reduction of crude palm oil (CPO) inventory and CPO prices.

“I don’t see the price of CPO falling in 2019 and the commodity will price between RM2,300 and RM2,400 per tonne on average for the whole year,” he added.

The three-day POC 2019, themed ‘Managed Uncertainties, Harvest Global Opportunities’, is organised by Bursa Malaysia Derivatives Bhd (BMD) and attended by prominent local and international industry experts who would share their analysis and assessment on the development and challenges impacting the price outlook for palm and lauric oils in 2019.

BMD operates the world benchmark for CPO futures.