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Sterling Biofuels delays production due to high palm oil prices

Sterling Biofuels has announced that construction of their 100,000 tonne per annum biodiesel plant is on time and within budget. Pre-commissioning has commenced and the plant is anticipated to have the capacity to commence production in July 2007.

However, given the continuing spike in palm feedstock prices without any corresponding increase in the biodiesel selling price, it is prudent to delay commencement of production until such time as feedstock prices begin to show a downward trend and become more favourable.

Sterling Biofuels believes that with rising feedstock production, feedstock prices will fall towards historical averages in the latter half of the year. When such a downward trend emerges and they will make a decision to commence production.

Update (18 Sep 07):

The Australian reports:

Sterling Biofuels International, which is building a biodiesel plant in Malaysia, is moving upstream in the process by gaining control of a Malaysian company with 4290ha of land earmarked for an oil palm plantation.


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