High palm oil prices halt USD5.5 billion Indonesian biodiesel plan

Bloomberg are reporting that Indonesian palm oil growers including PT Sinar Mas Agro Resources and Technology and China National Offshore Oil Corp. are halting or amending a USD5.5 billion biodiesel plan after the recent increases in palm oil prices made the rendered the projects no longer viable.

Palm oil prices have more than doubled in the past year, undermining the economic rationale for making biodiesel even as governments worldwide mandate greater use of alternative fuels. Malaysian biodiesel producers have suffered the same fate with many facilities that rely on palm oil feedstock shutting down (previous post).

Source: Bloomberg via The Age


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: