Biofuels Spurring Growth in Southeast Asia

The economies of many Southeast Asian countries rely on agriculture, and the push for biofuels is triggering a surge in growth for some of their key crops. Malaysia and Indonesia are the world’s largest producers of potash-dependent palm oil, much of which is being allocated to future biodiesel production. Plans for more than 80 biodiesel plants in Malaysia have been approved.

Low oil reserves force Thailand to import 90 percent of its oil – the equivalent of 13 percent of the country’s GDP – making it desperate to reduce its reliance on foreign oil. As a preliminary step, the Thai government last year began replacing MTBE in gasoline with ethanol made from domestic cassava.

Source: FAO