Governments' Targets for Biofuels Consumption Encourage Growth of the APAC Biodiesel...

Governments' Targets for Biofuels Consumption Encourage Growth of the APAC Biodiesel Industry

DUBLIN, Ireland--(Business Wire)--Research and Markets
(http://www.researchandmarkets.com/reports/c76322) has announced the
addition of Frost & Sullivan's new report: Strategic Analysis of the
Asia Pacific Biodiesel Industry to their offering.

This Frost & Sullivan research service titled Strategic Analysis
of the Asia Pacific Biodiesel Industry provides an overview of the
biodiesel industry status in the following countries of the Asia
Pacific region: Malaysia, Indonesia, The Philippines, Thailand,
Singapore, China, India, Australia, New Zealand, Japan, South Korea,
and Taiwan. A complete analysis of key market drivers, restraints, and
trends that are impacting market participants is provided. Biodiesel
consumption forecasts for each of the countries analyzed in the study
is provided along with legislative, feedstock, and supply trends.

Market Overview

Governments' Targets for Biofuels Consumption Encourage Growth of
the APAC Biodiesel Industry

Most governments in the Asia Pacific region are recognizing that
biodiesel can effectively reduce oil imports, improve fuel security,
and stimulate domestic agriculture. Initially, the biodiesel sector in
Asia Pacific focused on export opportunities, especially to the
European Union. "However, the past year has seen many countries move
to stimulate domestic consumption aided by volume sales mandates, tax
benefits, volume targets and other benefits," notes the analyst of
this research service. "These measures should strengthen demand in the
region and provide a viable alternative to exporting, although export
markets will remain critical for the industry in some countries."

Countries such as New Zealand and the Philippines have introduced
blending mandates, either for biofuels as a class or specifically for
diesel. On the other hand, the South Korean and Indonesian Governments
have reached agreements with oil companies to introduce blends. Where
diesel fuel is taxed, as in Australia, Thailand, and South Korea, some
tax benefits have been given to biodiesel. Governments have also
encouraged biodiesel production by offering waivers from corporate
taxes, grants or other incentives. It is evident that such strong
government support is significantly impacting the biodiesel industry
in the Asia Pacific region.

Market Participants Must Tackle Rising Costs of Feedstock by
Offering Suitable Alternatives

Although there are several strong drivers of growth in the Asia
Pacific biodiesel industry, both for increased supply as well as
demand, the past year witnessed a significant downturn in the fortunes
of the biodiesel industry. This was mainly due to the significant
increase in global feedstock prices that occurred since Q3 2006 (with
the rise in palm oil prices being particularly dramatic), and the fall
in mineral diesel prices since the middle of 2006, with signs of
increases in the crude oil price only emerging recently. As a result,
plants have delayed production, produced at below capacity or been
deferred altogether.

Asia Pacific biodiesel producers need to address the likelihood of
continued pressure on feedstock costs and ensure that they can produce
as cost-effectively as possible, while simultaneously exploring
alternative lower-cost feedstock supplies. "Consequently, alternative
feedstocks such as waste cooking oil and jatropha are being actively
explored by producers in the region," says the analyst. "As these are
available at a lower cost than the main vegetable oils, they can
improve commercial viability for the biodiesel sector."

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following
market sectors in this research:

By geographic region:

-Malaysia

-Indonesia

-The Philippines

-Thailand

-Singapore

-China

-India

-Australia

-New Zealand

-Japan

-South Korea

-Taiwan

For more information visit
here

Research and Markets
Laura Wood
Senior Manager
press@researchandmarkets.com
Fax: +353 1 4100 980

Copyright Business Wire 2007