Minnesota Biodiesel Law Boosts Demand and Irks Indonesia
Minnesota legislation currently requires 5% biodiesel content in all diesel fuel sold in the state, with provisions to increase that total to 20% by 2012. 80 million gallons of biodiesel will be needed by 2012. Since state production is currently at 33-35 million gallons, and the legislation requires that at least half of the mandated production comes from within the state, an additional five million gallons will be needed to meet the 2012 requirment, according to Farmers Union Industries spokesman Chuck Neece.
Another provision of the bill has drawn criticism from the Government of Indonesia – a ban on the use of virgin palm oil for biodiesel production as a result of environmental concerns. The U.S. currently imports palm oil indirectly from Indonesia through a third party, Wilmar International. While Minnesota is the first state to ban palm oil, there is a concern that others may follow suit. “The trade issue is currently being followed up by the Indonesian embassy in the U.S.” said Agriculture minister Anton Apriyantono. READ MORE and MORE