The plants of five biodiesel producers, namely Carotino, Sime Darby, Kuala Lumpur Kepong, Platinum Biofuels and AM Biofuel, are currently running at full capacity, reports local daily The Star.

While producers of palm oil methyl ester (PME) currently benefit from low palm oil prices there is another factor which has raised the interest in biodiesel from Malaysia: the European Union is conducting an enquiry on the impact of the export tax differentials for vegetable oils and products in Argentina and Indonesia, which are seen raising feedstock prices for EU FAME producers and give FAME imports from these origins a competitive advantage over indigenous product on the EU market.

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