Asia stepping up biofuel drive to quench oil thirst

Southeast Asian countries are racing ahead with plans to put a lid on oil demand by boosting domestic biofuels, a sign that record prices are spurring the substitution that Opec producers fear will lead to oversupply.
The rush to turn crops such as palm oil into transport fuels has picked up as the cost of importing oil has more than tripled since 2002, but only in the past year have Asian countries joined Europe in setting targets for biofuel consumption.
This is also politically easier than measures to rein in growing demand through unpopular retail fuel price hikes, or capital intensive longer-term measures to enhance energy security such as oil stockpiles and regional power grids.
But there are still plenty of constrains that could delay or halt biofuel development, analysts say.
Gulf Times