19/10/2007 (The Hindu), KOCHI: In its quest to find alternative uses of the country’s traditional product, palm oil, the Malaysian Palm Oil Council is experimenting with a number of ways to carve out a niche of its own in the highly competitive energy sector.

In an effort to kick-start the use of palm oil as a diesel substitute in a big way, the Malaysian government has initiated a voluntary programme for government vehicles to use a blend of five per cent refined palmolein with 95 per cent regular diesel. The usage of palm oil in fuel provides an opportunity for the industry to diversify, adding to its conventional supply of the narrow food system. The green fuel also sets as value-addition for the palm industry, as well as providing a cushion to price pressures, which most commodities are subject to.

While palm bio-fuel refers to the blending of five per cent of processed liquid palm oil with 95 per cent of petroleum diesel, palm bio-diesel is alternative fuel derived from palm oil and can be used in diesel engines without any modifications, says Kalyana Sundram, Director, Science and Environment, and Deputy CEO, Malaysian Palm Oil Council.

The use of palm methyl esters as a diesel substitute differs from the use of crude palm oil, which does not require any modification of the engines, he points out. Palm diesel does not produce explosive air/fuel vapour. It also offers enhanced safety characteristics with higher flash point compared to petroleum diesel, he says. Further, palm diesel is biodegradable in water.

Mr. Sundram says that in Malaysia, diesel is now subsidised by the government. The viability of palm bio-diesel appeared to be assured as the annual consumption of diesel is sizeable to absorb 500,000 metric tonnes of palm oil.

The government envisages that Malaysia will be able to cut its diesel imports by 500,000 tonnes a year as a result of producing the new palm oil bio-diesel product. A blend of five per cent palm bio-fuel and 95 per cent regular diesel is called a B5 blend and branded as ‘Envodiesel’ nation-wide.

The number of licences approved for bio-diesel production in that country is 91 as of April this year.