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Government Mandates Create Guaranteed Market for Bio-Fuel, Says Frost & Sullivan
Date:6/21/2009

tments in bio-diesel projects in SEA confirms the interest in the industry. In addition, the successful public listing of some bio-diesel producers in this region has reinforced investor confidence in the feasibility of the bio-diesel business model in the region."

Overall, the drivers for the export of bio-diesel produced in the SEA countries, especially for Malaysia and Singapore, that are focusing on export markets such as the European Union are expected to remain strong in the short and medium terms.

"The substantial increase in bio-diesel production capacity in the region is a clear sign of the industry going beyond its niche status to becoming a mainstream export revenue generator and a strategic part of government-driven environment initiatives domestically. However, domestic consumption will not only depend on the pace of government legislation, but also on the level of enforcement and compliance, in relation to blending targets and supply, achieved in each country," said Balasingam.

She continues, "A growing trend is seen as most SEA countries aims to increase the blend requirement for bio-diesel. Focus into local markets and meeting National Bio-fuel Policy requirements will be the future outlook for bio-diesel within the region. Support from local governments, through either subsidies or tax exemption, will in turn spur growth for the development of bio-diesel."

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