10/02/2008 (NST Online) - The search for sources of renewable energy has intensified as the world’s energy demand increases and fossil fuel reserves begin to dry up. Malaysia, which has been researching on palm biodiesel for the last 20 years, is now exporting it to major consumers like Europe, the United States and Japan. Soon, it is likely to follow in the footsteps of neighbouring countries in introducing biodiesel use at home, writes CHAI MEI LENG.

IF everything goes as planned, Malaysians can expect a third pump to be installed at petrol stations by the end of this year.

Malaysian Palm Oil Board chairman Datuk Sabri Ahmad was quoted in a Reuters report last month as saying that there are plans to introduce palm oil-blended diesel in the local market.

Drivers of vehicles powered by diesel engines will have a choice between ordinary diesel and E2.

E2 is a blend of regular diesel with two per cent of palm biodiesel.

Certain sectors, in welcoming this move, describe the move as timely.

“Even if vehicles run mainly on diesel, with a very small amount of palm biodiesel mixed into it, it’s considered a saving,” says Universiti Malaya’s Dr Masjuki Hassan.

“We have to prevent our oil reserves from being exhausted too quickly.”

Dr Masjuki, the head ofuniversity’s mechanical engineering department, emphasises that Malaysia has to keep up with the world’s technology in enhancing renewable energy sources, and also act in favour of the environment.

“Biodiesel has cleaner emissions. Imagine, if all taxis and passenger cars use biodiesel, how clean the air will be.”

Rapidly increasing oil prices have forced many to turn to renewable energy, including the Thai police, who are now running their patrol cars on used cooking oil, shaving some 200 million baht a year off its expenses.

Thailand also aims to include a 10 per cent blend of crude palm oil into its diesel.

In a similar move, Malaysia is also planning to counter the effects of soaring palm oil prices on the domestic biofuel industry.

The price of crude palm oil, riding on an all-time high of RM3,300-RM3,400 per tonne, is too expensive to produce biodiesel profitably.

It might be cheaper to use regular diesel than to produce biodiesel, says Masjuki.

As such, the only way to save the domestic biofuel industry is through a compulsory blending mechanism.