Asia Losing Biofuel Dream

Can’t win for trying. Fossil fuels prices are back down and now Southeast Asia is unhappy.

Malaysia and Indonesia produce the bulk of the world’s palm oil = the two countries had much to offer the biofuel industry and stood to make a killing by gouging the world on prices for the commodity during the fossil fuel price hikes.

However, when crude oil, which once peaked at $147 a barrel plummeted back to earth at $37ish a barrel, the two southeast Asia countries saw their dreams take a dive as well.

Last year, palm oil prices went up to $1,245/ton. This year – $526/ton after once dipping to $405/ton.

I get the whole supply and deman thing. But, it seems to me that if the palm oil producers could find a fair price and stick with it, they will have a better chance in the long run, no?

Malaysia had hoped to be the world’s leader in the biofuel industry.

Indonesia is still content to make biofuel 5% of its energy mix by 2025.

Both countries will be happy now, just to survive.

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