Asian utilities may use palm oil to ease RM254 pain

Asian utilities could turn to biofuels for power generation on a large scale if efforts to use palm oil to yield cleaner fuel could be used efficiently to ease the pain of US$70 (RM254.76) oil prices.

Palm oil prices have averaged US$350-US$400 a tonne in the past month, cheaper than products normally used to cut sulphur in fuel oil that have averaged US$450-US$500 a tonne, though industry sources say palm oil could near this level next year on biofuel demand.

Yet, if oil sustains its multi-year rally, the viability of using sulphur-free palm oil will last as long as the commodity keeps its wide price gap to other sulphur cutters. Sulphur is blamed for acid rain and lung problems.
The Edge Daily