QUOTE(cherroy @ Dec 16 2009, 05:42 PM)
I think a lot of people miss out the cost wise.
1 barrel of crude oil - USD 70 = RM238
1 barrel = 159 litres
Crude oil cost you 238/159 = RM1.50/litres
1 tan of crude palm oil = RM2400
1 tan approximate 1000 litre
Crude palm oil cost = Rm2.40/litres.
How can bio-fuel fight with fossil fuel if cost wise already high at starting point, not to mention the technical difficulty for bio-fuel engine.
Unless legislation required, purely on commercial wise that everything talk about $$ and cost, there is no way bio-fuel can outmuscled fossil fuel.
Ask ourself, do you willing to pump Rm2.40/litres one instead of Rm1.50/litres if both are the same (in actual fact, bio-fuel still lose out to fossil fuel until now in term of technical wise)
you havent add in the refining part of d crude oil... crude oil can produce a lot of other stuff besides petroleum.... and d refining process requires a lot of energy in terms of electricity.... so cannot use crude oil price... must use petrol n diesel price..
crude oil also have to go through refining but in a diff way... not all palm oil is used, certain part is sold more exp to pharmacys and cosmetic companies... after all d exp part is gone, d lousiest part is used for fuel.. and to produce fuel from this crude is just by adding ethanol and some mixing...
however i still think palm oil is not viable because d fertilizer is crazy exp... our workers now are all indons n indians.. how many can we hire?