Malaysia hopes to increase its use of palm oil as fuel

10/10/05 (BBC News) - Malaysia has announced plans to switch from usingdiesel oil to a part bio-fuel alternative.

Commodities Minister Peter Chin said laws were being drafted to make theuse of such fuel compulsory by 2008.

Negotiations have begun with petroleum companies, to persuade them toproduce fuel using both mineral and vegetable oils, the government hasrevealed.

The government favours fuel from 19 parts diesel to one part palm oil, andsays engines do not need modification.

However, environmentalists are likely to have mixed feelings about themove. While it marks a shift away from fossil fuels, it could cause otherproblems.

Search for alternatives

As demand for oil rises and reserves dwindle, countries like Malaysia arelooking for alternatives, according to the BBC correspondent in KualaLumpur Jonathan Kent.

Palm oil is made from the fruit of the oil palm, and Malaysia is theworld's largest producer.

Last month, Malaysia announced a joint venture with private partners tobuild three plants that will make the new fuel for export to Europe.

The switch to alternative courses of fuel is not all good news forenvironmental campaigners.

Malaysia has lost much of its ancient rainforest to palm oil plantations,and Malaysian companies are thought to be behind moves to expand palm oilproduction in Indonesia.

Conservation groups say that could worsen the destruction of forests onthe islands of Sumatra and Borneo, and speed the extinction of specieslike the orang-utan.