Carotech To Supply 50 Pct Of Its Biodiesel Capacity To Europe, US Via Trafigura
November 13th, 2008 - Posted in biodieselKUALA LUMPUR, Nov 13 (Bernama) — Carotech Bhd will supply over 50 percent of its palm biodiesel capacity to Europe and US starting January 2009 through its partnership with Trafigura Beheer BV Amsterdam.
Managing director, David Ho, said under the agreement, the palm methyl-ester producer will supply Trafigura 60,000 to 84,000 metric tonnes of its biodiesel product ‘Carodiesel’ valued at up to RM200 million.
He said, however, the value of the contract would be based on the prevailing crude palm oil (CPO) price.
Ho said the cooperation with Trifigura was timely as Europe remained the largest consumer for biodiesel.
“The outlook for biodiesel industry is still bright with the European parliament reaffirming its target of five percent for biofuel conversion for transport purposs by 2015 and thereafter rising to 10 percent in 2020,” he said after signing the agreement with Trafigura here, Thursday.
Also present was Deputy Minister of Plantation, Industries and Commodities, Senator A. Kohilan Pillay.
Ho said the US market for biodiesel jumped from 25 million gallons per year in 2004 to 450 million gallons in 2007.
Earlier, Kohilan said Carotech’s partnership with Trafigura would help the country reduce its palm oil stockpile by 500,000 tonnes from almost two million.
He said Malaysia has the potential to increase output of biodiesel taking into account the availability of feedstock.
“We are confident of producing more biodiesel which will help to improve the CPO price which we hope will be more than RM2,000.
“For the first nine months of 2008, Malaysia exported 128,527 tonnes of biodiesel,” he said.
He said 91 biodiesel licences had been issued to biodiesel producers.
“Currently, 15 plants are in operation with a combined capacity of 1.6 million tonnes. Out of that, only five are actively producing and exporting methyl-ester,” he said.
