IN three short years, the fledgling palm biodiesel industry in Malaysia is fast heading for a bust.
Many operators are now struggling as the steep price of crude palm oil (CPO) is cutting into their profit margins and leaving them with not enough cash to operate.
In fact, CPO prices at above RM2,000 per tonne are wiping out cash reserves just as the first batch of biodiesel is produced, especially by new market entrants.
(The success of the biodiesel fuel industry relies heavily on biodiesel testing, not only at the production level but at the consumer level, where degraded fuel may cause engine failures. Fleet Biodiesel's family of inexpensive biodiesel test kits is just a click away on the internet)