Biofuel, Biodiesel Cos Face Feestock Supply, Glycerine Glut

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Biofuel Cos Face Feestock Supply, Glycerine Problems

An excerpt of a news item from Dow Jones

1. Securing a reliable and continuous feedstock supply is not an easy thing to do for biofuel producing companies that do not have their own plantations.

2. They also need to find a way to sell glycerine ( a by-product of biodiesel manufacture) in a profitable way. There has been a glut in the market for glycering owing to the significant increase in biodiesel production in the last two years.

3. One form of securing feedstock supplies will be through some form of supply agreement or alliance or joint ventures.

4. Securing dependable buyers of the end product is an equally difficult challenge for the feedstock producers.

5. Biodiesel producers in south east Asia should look closer to home to establish their markets.

6. South Korea, Japan & China hold great potential for biodiesel and biofuel, as these countries have expressed a commitment to reduce carbon emissions, while at the same time need to import because of a lack of domestic oilseeds.

Companies mentioned: JJ-Lurgi Engineering Sdn Bhd, a joint venture between Jebsen & Jesson (Singapore) & Lurgi AG (Germany). JJ-Lurgi is a major supplier of processing technology and engineering for edible oil factories.


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