Biodiesel viewed as cost-fighter in South Korea

South Korea may become the Asian equivalent to Brazil in producing biofuel. Singapore, one of the largest regional oil refiners, has easy access to palm oil, a component of biodiesel, from Malaysia and Indonesia. Already one entrepreneur, Kom Mam Sun, who opened his biodiesel plant in June, has earned a profit from his biodiesel plant.
But German commodities company Cremer Gruppe has more ambitious plans. It plans to build a biodiesel plant in Singapore by 2007 which will produce over 200,000 tons of biodiesel. According to Cremer Gruppe's marketing director John Hall, the company plans to sell the fuel at $40 a barrel, considerably less than the current $70 a barrel for crude oil. While many environmentalists continue to debate biodiesel productions ultimate effects, analysts say interest in alternatives continue to increase. States analyst Victor Shum, "The fuel market is so big that biodiesel can't make a significant difference and will only be a small fraction of the overall diesel use in Asia. But with oil prices so high these days, biodiesel does get more and more cost-effective."

[Source: Reuters]

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