Excerpts From Bloomberg News...
Rising use of vegetable oil for biodiesel is “still sizably exceeding the growth rates in other usage categories, like the food sector,” Oil World wrote. “Palm oil is gaining importance as a feedstock, accounting for roughly a third of biodiesel output worldwide.”
An estimated 9.5 million to 9.6 million tons of palm oil will be used to make biodiesel this year, according to the researcher. Indonesia’s production of palm-oil based biodiesel may increase by 1.2 million tons to 3.8 million tons, Oil World wrote.
Soybean oil use for biodiesel production is forecast to rise by 300,000 tons to 7.3 million tons, according to the report. Soybean-based biodiesel output in the U.S. is seen at 2.3 million tons, Brazil may produce 2.1 million to 2.2 million tons and Argentina 2.05 million tons.
The European Union used a record 6.9 million tons of palm oil in 2013, according to Oil World estimates. Energy accounted for 3.6 million to 3.7 million tons of use in 2013 from 2.68 million tons, lifting the proportion of palm oil used as fuel to about 53 percent from 45 percent.
EU consumption of 17 oils and fats totaled 30.85 million tons last year, with 17.8 million tons for food use and 9.01 million tons for biodiesel, according to Oil World. Within the EU’s palm oil use, 3.25 million tons was for food and chemicals, 2.51 million tons for biodiesel and 1.14 million tons to generate electricity and heat, Oil World said.
To contact the reporter on this story: Rudy Ruitenberg in Paris at rruitenberg@bloomberg.net