Palm Oil Biodiesel May Face Barriers In Europe

Expectations in the palm oil industry for biodiesel sales to Europe may be premature, as trade barriers look likely to limit market access, a European biofuels industry official said.

Instead, the industry should focus on supplying the bioenergy, or electricity generation, market, which holds more potential, said Edgare Kerkwijk, chief financial officer and head of Asia of Netherlands-based biofuels trader Biox Group B.V.

However, the use of palm oil in the bioenergy sector is limited at the moment because hype about biodiesel has kept the commodity at prices beyond buyers’ reach, he said.

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