Timely To Introduce CPO As Fifth Energy Source, Says Dr Lim

KUALA LUMPUR, May 31 (Bernama) -- Primary Industries Minister Datuk Dr LimKeng Yaik said it was timely for Malaysia to look into the possibility ofmaking crude palm oil (CPO) as a fifth energy source, "As the countrybecomes more developed, we may have to think over providing the countrywith more environmentally friendly biodiesel such as CPO," he said.

Dr Lim said that although the percentage of CPO as the fifth energy sourcemight be small, it would be different from the traditional sources as itproduced less smoke.

Currently, Malaysia has four fuel policy involving sources like hydro,gas, coal and petroleum, he told reporters after meeting severalrepresentatives from oil companies here Thursday.

The recommendation to introduce environmently friendly biodiesel would bemade after assessing the performance of the burning of CPO for fuel andalso the cost involved.

He said that developed countries such as the US and Europe had alreadyintroduced such a policy (environmental friendly biodiesel).

Dr Lim said that CPO could be used for fuel for a long term purpose andnot merely to reduce stock at the present moment.

Earlier, he said that the ministry had introduced the usage of blended CPOand medium fuel oil (MFO) for other industries, besides Tenaga NasionalBhd.

Currently, about 3.6 milliom tonnes of MFO is being used by industriesthat are involved in tyre, cement, food, steel, paper and chemical plants,Dr Lim said.

As such, there is vast potential on the usage of blended CPO/MFO in theseindustries and that the ministry's target of burning 400,000 tonnes of CPOfor fuel this year is likely to be achieved.

He said some of the potential customers are going through a trialsessionof using blended CPO/MFO as their energy source with technical assistancefrom Palm Oil Research Institute of Malaysia (PORIM).

Asked on the price of blended CPO/MFO and MFO, he said, "we have to becompetitive. The price will be no less different, but perhaps even cheaperas an incentive for them to use this alternative energy source."

Currently, MFO is sold at an average price of RM540 per tonne. He said theministry is aggessively marketing the blended MFO.

Elaborating on the discussion with the oil companies' representatives, hesaid they were very supportive.

"They have come forward to provide transportation for the supply and alsoto help us market the blended oil by identifying potential customers," hesaid.