Biodiesel Industry Wavers as Feedstock Prices Increase

from Channel NewsAsia:

SINGAPORE: There has been growing interest in biodiesel fuel, amid the sharp hikes in oil prices.

But analysts at the Asia Biodiesel Conference on Tuesday also noted that there has been a 30 to 40 percent increase in feedstock prices this year, making biodiesel production more costly. Palm oil and soya are among the feedstock used for producing biodiesel fuel.

There are now about 100 biodiesel plants in Asia, with a total capacity of 3.5 million tonnes. This is expected to nearly double to 6.5 million tonnes by 2008.

Some industry players said margins are getting slightly better, but more help may be needed.

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