2/4/07 (Business Times)  -  THE Malaysian Palm Oil Council (MPOC) feels that palm oil will certainly qualify as second generation biofuel in reducing carbon dioxide emission by more than 80 per cent, with a little more fine-tuning in its processing technology.

Carbon dioxide is essential for photosynthesis in plants, but poses a potential environmental threat when excessive amounts are produced by burning fossil fuels like coal, oil and natural gas.

MPOC chief executive officer Tan Sri Datuk Dr Yusof Basiron said a strong case is being made to extend use of alternatives, such as biofuels.

"Biodiesel markets are now opening up and it will help create more demand for palm oil. In doing so, palm oil planters will be blessed with good demand which will help prices to stabilise at a remunerative level," Yusof told Business Times.

By the end of this year, Malaysia will have about 500,000 tonnes installed capacity from 10 biodiesel plants.

Yusof said with the projected successful and bullish scenario for the producers, there will be a lot of market sectors like non-governmental organisations who would start campaigns.

"In the competitive world, we have to make sure palm oil is sustained and continues to be the strongest attribute to the industry.

"We however foresee negative attacks from the market sectors who will be against plantation growth.

"They must see that we are more superior in terms of nutricient and environment parameters than competing oils," he added.

MPOC chairman Datuk Seri Lee Oi Hian, who is also chairman of major palm oil producer Kuala Lumpur Kepong Bhd, said the palm oil council is positioning Malaysian palm oil to be able to extend to as wide a market as possible.

"We want to continue to cater for the subsequent increase in palm oil productions out of our new planting and maximise palm oil yield, so we will have more palm oil in the future.

"It is very critical for us to maintain our market share and increase new and matured markets where we can sell our oil in a way that will not effect our market price," he said.

Lee added that converting agricultural land to oil palm planting brings about many positive benefits for the environment such as reducing soil erosion. - By Sharen Kaur