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Malaysia is going to delay its plans for a mandatory 5 percent of biodiesel blended into regular diesel pumps (B5). The biodiesel production (which is obtained from palm oil and called Envodiesel) facilities are far from being ready and are suffering delays.

The headline the Houston Chronicle gave this AP story, "Malaysia Suspends Biodiesel Effort" is a bit alarmist. Malaysia is still promoting biodiesel. The government is in fact worried that the fuel produced in the 32 biodiesel projects it has greenlighted thus far will be so popular that the food market will be deprived of palm oil. The 32 projects can produce about 3 million tons of biodiesel (a year?). Palm oil is used to prepare foods and is a major source of biomass for biodiesel production

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