Taiwan imposes B1 mandate using waste oil; oil companies to absorb price impact

In Taiwan, the national government has imposed a B1 mandate that will take effect this week. Waste oil will be used as a feedstock, and the state oil company CPC and Formosa Petrochemical will absorb the extra costs rather than passing along higher prices to consumers. The mandate is expected to produce 10 Mgy of biodiesel and reduce carbon emissions by 138,00 tons per year.

Taiwan background

The newly elected government of Ma Ying-jeou has been expected to halt biofuels development, and shift policy from the production of fuel from crops to increasing food productivity. The new chairman of the Council of Agriculture, Chen Wu-hsiung, had told the China Post that biofuels are not feasible for Taiwan because of the limited land for agriculture.

Earlier, the deputy director of the Agriculture and Food Agency said that Taiwan will switch emphasis to producing ethanol after yields from biodiesel feedstock cultivation had proven to be a disappointment. The country will begin a phased transition from soy and sunflower cultivation on 7,000 acres to sweet potatoes for ethanol production.

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