19/12/05 (The Star)  -  MALAYSIA is poised to be a significant global player in the production of biofuel, going forward.

Malaysian-German Chamber of Commerce and Industry general manager Thomas Brandt said the potential for Malaysian companies to venture into palm based biodiesel production was tremendous – catering not only for domestic but also for the export market.

He told StarBiz in Kuala Lumpur that palm oil would likely be one of the major components in the production of biodiesel especially with increasing fossil energy prices and the finite nature of fossil resources, which suggested the usage of alternatives and biofuels.

Currently, rapeseed and soybean oils are the two main raw materials for the production of biodiesel in the world.

Today, Germany is the biggest producer and user of biofuels within Europe and has a leading position in the field of biofuel production using rapeseed, soybean and palm oil. Malaysia is the world's largest producer and exporter of palm oil, accounting for 47% of global output and 54% of world exports last year.

“For obvious reasons, I believe more partnerships or cooperation between Malaysian and German companies in biofuel industry will mutually benefit both parties,” he added.

Citing German train operator PE Arriva AG's cooperation with the Malaysian Palm Oil Board on the use of palm biodiesel to run trains in Germany, Brandt said: “An initial 35 tonnes of Malaysia palm biodiesel had been sent to Germany to be tested on PE Arriva's trains.”

With a seemingly promising trial, another large quantity of palm biodiesel has been purchased, he added.

As one of the technological leaders in the use of renewable energies, the Deutsche Bundestag had approved the Exportinitiative Erneuerbare Energien (Renewable Energy Export Initiative) as a means of promoting the export of renewable energy technologies. 

The German Energy Agency or DENA was entrusted with the development and implementation of the initiative for transfer of technology know-how to other countries interested in cooperating with German companies in the biofuel industry.

According to Brandt, the rapeseed biodiesel was the most popular in Germany. 

Production of biodiesel this year is expected to reach 1.9 million tonnes compared with slightly over 1.2 million tonnes last year.

Last year, an estimated one million tonnes were sold at German filling stations – 32% more than a year earlier, which was enough to satisfy the annual requirement of about 300,000 cars. 

One of the reasons for the success of biodiesel in Germany, compared with fossil diesel, is the fact that biodiesel is cheaper by about 6 to 10 cents per litre, due to higher subsidies for its environmentally friendly impact.