05/02/2013 (The Sun Daily) - The B10 biodiesel, which contains crude palm oil (CPO) and is expected to help stabilise declining CPO prices, is scheduled to come in place by the middle of next year.

Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said that once blending facilities are ready by that time, only calibration works will be required for production to begin.

"I expect everything to be completed by mid-next year. By the end of this year, we are expecting 75% of the facilities to be completed," he said at the 'Reach and Remind Friends of the Industry' seminar 2013 and dialogue on 'Challenges and Opportunities in 2013' organised by the Malaysian Palm Oil Council (MPOC) today.

The B10 programme involves production of fuel with 10% palm methyl ester (PME) and 90% diesel.

He said the government thus far has spent RM80 million to set up blending facilities and most of them will be ready by the end of this year.

Dompok said the government has received cooperation from oil companies, but noted that there are concerns in the industry, as some vehicle manufacturers want to see the results of B10 usage.

It was reported that the implementation of the B10 programme nationwide for the non-subsidised sector will ease the current record-high palm oil stock, and will further assist removal of CPO stock from the marketplace.

On a separate matter, Dompok also said the CPO export is likely to improve this year.

"I think it will improve. I have this feeling that we have reached the bottom and when you reach there, then you can only go up," he said.

Meanwhile, MPOC chairman Datuk Lee Yeow Chor said exports will go up this year as the government has already discontinued the duty free export quota beginning last month.

"We are targeting emerging countries. We believe that is where the growth is. Palm oil promoters are also looking at emerging countries.

"I believe there is plenty of space for these countries to grow. As far as MPOC is concerned, we are optimistic we will have better export this year," said Lee.