27/09/05 PETALING JAYA, (Bernama) -- The Malaysian palm oil industryshould look into producing more bio-diesel due to the huge demand for suchgreen energy in countries like Europe, Malaysian Palm Oil Board (MPOB),first grade steam engineer, research consultant, Ir Ravi Menon said.

There is a market for bio-diesel (Europe) and a huge potential to betapped, he told Bernama when asked to elaborate on his suggestion thatMalaysia should produce more bio-diesel.

To have a significant impact on the palm oil industry the production ofbio-diesel should be one million tonne per annum, he said at hispresentation entitled: Status and Development of Palm Oil MillionTechnology at the International Palm Oil Congress (PIPOC) 2005, hereTuesday.

Europe produces about 1.2 million tonnes of bio-diesel per year. However,he said 180,000 tonnes of bio-diesel would be a good start.

The MPOB is embarking on a joint venture with local companies to set upthree bio-diesel plants in Malaysia in a year's time.

Each of the plant would have a capacity to produce 60,000 tonnes ofbio-diesel.

Channeling more palm oil into bio-diesel would also help to stabilize andmaintain the price of the commodity at a steady level and stockpiles ofpalm oil can be reduced significantly, said Ravi.

-- BERNAMA