14/01/2009 (The Star Online), Bangi - Existing biofuel manufacturing licence holders have been given until end-April to reapply for a new operating licence from the Primary Industries and Commodities Ministry, said minister Datuk Peter Chin Fah Kui.

The ministry took over the task of issuing biofuel manufacturing licences from the International Trade and Industry Ministry from Nov 1, 2008, under the new Malaysian Biofuel Industry Act 2007.

And given that of the current 91 approved licences, only 16 plants had taken off, Chin said his ministry might review some of the licences.

“Although we plan to approve the applications by the existing biofuel licence holders, we might review those that have lapsed or still delaying the construction of their biofuel plants,” he said after attending a seminar organised by the Malaysian Palm Oil Board here.

Chin noted that the Government had yet to revoke any biofuel licence held by errant producers, given the high palm oil prices in 2006 to mid-2008, which made biodiesel production not viable as palm oil was used as feedstock in the production.

The Government has also agreed that licence applications for biofuel production will be reopened on a limited basis until Dec 31, subject to terms and conditions.

“Such a decision will allow the ministry to consider pending applications, which were frozen since June 2006 as well as new applications,” Chin said.

As at Oct 31, the Government had approved 91 palm-based biofuel manufacturing licences with a total capacity of 10.2 million tonnes annually.

“However, only 12 palm-based biodiesel plants are in operation with a total capacity of 1.5 million tonnes per year,” Chin said.

Another four new plants with a total annual capacity of 190,000 tonnes had recently been completed and currently preparing for commercial production this year, he added.