MARKET DEVELOPMENT
Palm oil board to take over biofuel licensing
Palm oil board to take over biofuel licensing
July 5 2007 (Business Times) - THE Malaysian Palm Oil Board (MPOB) is to take over from the Malaysian Industrial Development Authority (Mida) as the issuer of biofuel licences next year.
This will take effect when the Malaysian Biofuel Industry Act 2006 begins to be implemented next year, Plantation Industries and Commodities Minister Datuk Peter Chin told reporters at the 2007 International Conference on Biofuels today.
When the ministry gazettes the Act, MPOB will become the implementation agency and take over the licensing responsibility as well, he added.
This will allow for much closer monitoring of the biofuel industry and ensure its orderly development.
He said those issued the biofuel licences will be required to begin their production within six months of the Act taking effect.
So far, 92 biofuel licences have been approved by Mida.
Chin said four undertakings had begun their commercial production and three of them are on a trial run basis.
He noted that under Mida, there is no provision for a timeline to begin production once the licence is obtained.
The minister said the government is encouraging research and development in feedstock to further explore the potential for biofuels and contribute to the development of the renewable energy sector.
He pointed out that the oil palm industry generates a huge amount of biomass in the form of fibres, shell, empty fruit bunches, oil palm trunks and oil palm fronds. These could be used directly to produce energy or used as feedstock to produce second generation biofuel, he said.
On another note, Chin said the government will focus on increasing the production of palm oil through increased productivity by consistently replanting old palms with new high yielding clones and adopting good agronomic practices.
“We will continue to engage environmentalists and various stakeholders to assure them that our practices are sustainable,” he assured. — Bernama
This will take effect when the Malaysian Biofuel Industry Act 2006 begins to be implemented next year, Plantation Industries and Commodities Minister Datuk Peter Chin told reporters at the 2007 International Conference on Biofuels today.
When the ministry gazettes the Act, MPOB will become the implementation agency and take over the licensing responsibility as well, he added.
This will allow for much closer monitoring of the biofuel industry and ensure its orderly development.
He said those issued the biofuel licences will be required to begin their production within six months of the Act taking effect.
So far, 92 biofuel licences have been approved by Mida.
Chin said four undertakings had begun their commercial production and three of them are on a trial run basis.
He noted that under Mida, there is no provision for a timeline to begin production once the licence is obtained.
The minister said the government is encouraging research and development in feedstock to further explore the potential for biofuels and contribute to the development of the renewable energy sector.
He pointed out that the oil palm industry generates a huge amount of biomass in the form of fibres, shell, empty fruit bunches, oil palm trunks and oil palm fronds. These could be used directly to produce energy or used as feedstock to produce second generation biofuel, he said.
On another note, Chin said the government will focus on increasing the production of palm oil through increased productivity by consistently replanting old palms with new high yielding clones and adopting good agronomic practices.
“We will continue to engage environmentalists and various stakeholders to assure them that our practices are sustainable,” he assured. — Bernama