Biofuel maker pushes product use in market

ASB Biodiesel, the developer of Hong Kong's largest biodiesel plant, has renewed its call for the mandatory blending of biodiesel into diesel products sold in the city as a means to jump-start a market for the cleaner burning fuel.

Chief executive Anthony Dixon said Hong Kong had lagged some of its regional neighbours that had implemented mandatory blending, such as Indonesia, Malaysia, the Philippines, South Korea and Taiwan.

"Until now, biofuels have been largely absent from discussions about low-carbon transport and air quality," Dixon said. "The start of production at our plant will raise awareness of what is possible in Hong Kong."

Without policy support, ASB, one of three biodiesel producers in Hong Kong, will see its output consumed mostly in Europe - where the bulk of the world's biodiesel is consumed, thanks to mandatory consumption requirements - after it is sold to international oil firms. Shipping biodiesel to Europe also generates pollutants in addition to the freight costs.

ASB's plant in Tseung Kwan O is expected to start production soon, with used cooking oil as the biofuel source.

Biodiesel was 5 to 10 per cent more expensive than motor vehicle diesel now available in Hong Kong, the findings of a pilot scheme for government vehicles to test biodiesel use showed.