Biodiesel to replace fuel oil

BANGKOK: The government will promote greater use of biodiesel instead of fuel oil to generate electricity in an attempt to absorb a surplus of palm oil, according to Deputy Prime Minister Kittiratt Na-Ranong.

  • Published: 28/12/2012 at 05:55 PM
  • Newspaper section: breakingnews

The National Palm Oil Policy Committee made the decision on Friday after being told that the current palm oil surplus amounted to about 375,000 tonnes, said Mr Kittiratt, who is also the finance minister.

The plan should also help improve the prices of palm oil for producers, he added.

He said the committee has agreed to replace 10,000 litres of fuel oil with palm-based biodiesel daily. The concentration of palm oil in biodiesel will also be increased to 7% from 5% to help bring down the surplus further.

Mr Kittiratt also said the concentration of palm oil in biodiesel could be reduced to 3% or 4% if stocks of palm oil become too low. The fluctuations would not affect the performance of engines fuelled by biodiesel, he said.

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