50 percent drop in palm oil prices is reigniting Southeast Asian biodiesel production, experts say

In Singapore, the 50 percent drop in global palm oil prices to $667 per tonne will spur biodiesel production in South East Asia, according to industry leaders at LMC International and Godrej. CPO hit a high price of $1300 earlier this year, chocking off biodiesel production, with the spread between crude oil and palm oil prices making palm-based biodiesel economically viable.

Malaysian palm oil reserves are expected to increase based on rising production, and is expected to keep ahead of the rate of growth for exports based on the return of biodiesel production. South east Asian biodiesel companies had been operating at less than 50 percent capacity this year.

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