Market looking up for Malaysia

Market looking up for Malaysia
26 October 2010

Malaysia is well placed to become a global leader in biodiesel production. Ambitious plans were announced in 2008 but in the last couple of years the market has virtually ground to a halt. 

The government has so far approved 56 licenses for biodiesel production, which would create an annual production capacity of 6.8 million tonnes. However about 60% of the approved capacity has still to be built.

This is mainly due to mandate delays, high feedstock prices and existing diesel subsidies which distort the price of biodiesel.

Malaysia Palm Oil Board (MPOB) figures show that the production of biodiesel, a mixture of diesel and 5% processed palm oil, dropped 99% from 12,640 tonnes in March to just 137 tonnes in July.

But now things seem to be changing. Malaysia's Plantations and Commodities Minister Bernard Dompok has just announced that the government is looking at cutting the subsidy for diesel, which currently costs 1.75 ringgit (€0.4) per litre, to encourage the use of the biofuel. These cuts would begin next year. 

The government has also started making concrete plans regarding the long awaited B5 blend. 

The plan was originally due to take effect in 2007 but will now not come into force until June 2011.

To help prepare for this the government has given five petroleum companies a total of 5 million ringgit to help build the necessary infrastructure. 

Petronas, Shell, Chevron, Exxon and BHP will each receive 1 million ringgit. 

The five petroleum companies need to install pipes, tanks and automation systems to blend B5 biodiesel at the designated depots, starting with central region – Port Klang and Putrajaya (Selangor) – as well as Dengkil (Negri Sembilan) and Tangga Batu (Malacca).

Despite this, the industry is not over the worst of it yet. The next challenge the market faces is how to meet the EU's strict sustainability criteria for biofuels, which state that biofuels must reduce greenhouse gas emissions by 35%.

Malaysian-produced palm oil-based biodiesel which is found not to meet this criteria will not receive the incentives and subsidies necessary to make the fuels cost competitive with fossil fuels. Malaysia has now threatened to file a formal complaint with the World Trade Organisation over this issue.

As an ongoing concern sustainability standards forms one of the key focuses at the upcoming Bioenergy International Asia expo & conference, being held in Kuala Lumpur on 10-11th November.

Vincent Piket, Ambassador and head of the delegation of the European Union to Malaysia, will speak on how Malaysia can open up trade opportunities to Europe.

This will be followed by presentations from two different sustainability certification bodies. These will look at what the criteria entails, the challenges faced by the industry and the Commission's communication requirements.

The conference programme also includes presentations from successful producers across Asia such as Alpha Biofuels, Pacific Bio-Fields Holdings, Indo Biofuels Energy and Inbicon to name a few.

Other key themes at the event include how to secure plant finance and investment, new feedstock possibilities, managing price risk exposure and a global overview of the biofuels market across Asia.

This conference is unique in that it is twinned with Tank Storage Asia expo & conference, a consecutive two day conference exploring the bulk liquid storage market in Asia. Conference delegates can attend both events for the same price, and ensures it will be of interest to oil companies, traders and terminal operators, as well as biofuel producers, regulatory and technology suppliers.

Full details of the event can be found at www.biofuelsinternationalexpo.com/asia and www.tankstorageevents.com/tsasia
The conference delegate fee is only RM2,900 or RM 1,500 for one day. There is also a 10% discount for the second delegate from the same company registered and 25% for each subsequent registration 
Since the market is still growing with many fledgling companies there is a 50% discount for certified biofuels, biomass and biopower producers.

READ MORE - Market looking up for Malaysia

Korean Grand Prix in Yeongam

Michael Schumacher came home in fourth place today at the end of a thrilling inaugural Korean Grand Prix in Yeongam.

 

The dramatic race started under the safety car due to the wet conditions and was red-flagged for 50 minutes on lap three before restarting, again under the safety car, and finishing just on the two-hour limit.

 

Nico Rosberg was in an excellent position in fourth place, having just overtaken Lewis Hamilton, when he was hit by the spinning car of Mark Webber and forced into retirement on lap 19.

 

MICHAEL SCHUMACHER
 

"I am pretty happy with today's race and I have to say thank you to my team who guided me perfectly through the afternoon. I am sure that the spectators had a lot of fun here today at this first Korean race. The FIA did very well to start the race behind the safety car as it absolutely would not have been possible to have a racing start. The only shame for us today was that Nico was put out of the race otherwise we would have seen a very good weekend for our team."

 

NICO ROSBERG 
 

"We had a near perfect weekend with the car that we have until the collision in the race today. Qualifying in fifth place was great yesterday and the car has felt good all weekend. The team has done a great job here and the straightline speed that we had enabled me to overtake Hamilton early in the race. So it's a big shame that my race was ended early. It was really difficult to judge which way Mark's car would go and I took the decision to go left but he spun more and more that way and I just couldn't avoid him. It's a real shame as we could have had a great result today."

 

ROSS BRAWN
 

"The team did an excellent job this weekend and have been rewarded with a very good result for Michael today. It could have been even better as Nico was in a strong position and obviously we are disappointed that he was taken out of the race. Nico had made a great overtaking move on Hamilton, he was very happy with the car and everything was going well up that point. Michael had an extremely good race. He took all of his opportunities and drove sensibly in the tricky conditions. We spent the latter part of the race looking after the tyres and making sure that we got through to the end as we didn't think that we could challenge the leaders. Overall a very positive weekend and we hope to finish the season with equally strong performances."

 

NORBERT HAUG
 

"A good race from Michael today finishing in fourth place behind the World Championship contenders as 'best of the rest' after a great manoeuvre to overtake Jenson Button. A shame for Nico who certainly had the possibility of finishing on the podium, given that he was ahead of Lewis who ultimately finished second, when he was caught up in Mark Webber's incident. A good job from our team here in treacherous conditions with no mistakes made which was very difficult today."

READ MORE - Korean Grand Prix in Yeongam

Mercedes GP/Petronas Race Report - Singapore - Sept 27, 2010

Nico Rosberg continued his run of points-scoring finishes today with a strong drive to take fifth place at the Singapore Grand Prix from seventh position on the grid. Team-mate Michael Schumacher had a more eventful race with two out-of-sync pit stops compromising his track position and he finished the 61-lap race in 13th place.

NICO ROSBERG "It was extremely tough out there but we achieved the best possible result for us today. Our aim for the last few races is to finish as the best behind the top three teams and today we were able to profit as two of them had issues with Felipe in qualifying yesterday and Lewis in the race today. So fifth place is good for us and it's very satisfying for the team. I could push Jenson a little at some points which was good to see. We will be aiming to finish the rest of the season as strongly."

MICHAEL SCHUMACHER "I am not particularly happy about my first experience of racing in Singapore this evening. I had two encounters with other cars which were racing incidents and meant that I had to make my stops at times which were not ideal and consequently my race was heavily compromised. I suffered with the rear tyres on my first set of options which made me slide rather than drive through corners which was tough, so I would probably say that I only enjoyed the second part of the race."

ROSS BRAWN "We had a small grid advantage starting from the clean side and Nico was able to make up a place which was good. We then stayed out under the first safety car when almost every car behind us came in which made us a little vulnerable but I was very pleased with our pace which enabled us to control the situation. Nico drove an excellent race today with a competitive performance that saw him pushing the McLaren-Mercedes at various stages. Michael had a more eventful race and whilst it didn't quite go his way today, he persevered to the end of the race. It was a very good team effort to improve the car over the course of the weekend and another well-deserved points finish."

NORBERT HAUG "Nico drove a very clever race and brought home the best result we could have achieved under our existing circumstances. Michael had an action-packed first night race in Singapore but he kept going which speaks for him and his car, posting some competitive lap times after his second stop for a new nose. Thank you to everybody in the team for the hard work that was done here in difficult conditions when working in the garage was like being in a sauna at times. Singapore is one of the very best places to stage a race and on behalf of Mercedes-Benz, I would like to give our compliments to the organisers who have built up a benchmark race in a very short period of time. Our learning process is taking our team in the right direction and I am sure that we will have a better car and results next season. We are looking forward to the last four races and everyone will work very hard so that our team and drivers can compete with the leaders in the seasons to come."

READ MORE - Mercedes GP/Petronas Race Report - Singapore - Sept 27, 2010

Nico Rosberg and Michael Schumacher express readiness for the Monaco GP

Rosberg and Schumacher in Barcelona last weekend. Photo courtesy of Mercedes GP

The short turn around between the Spanish Grand Prix last weekend and this weekend's Monaco race doesn't give Mercedes GP Petronas drivers, Nico Rosberg and Michael Schumacher, much chance to reflect on the highs and lows from Spain.

For Nico Rosberg, the Spanish GP was one to forget as he found himself catapulted out of point scoring opportunities for the fist time this year. Monaco is a home race for the German who'll be looking to reverse last week's hiccup. His early races have caught the attention of many due to his ability to plonk the under performing Mercedes car high on the points table and out perform the sport's most successful driver, Michael Schumacher. But Monaco is a tough place to reverse disappointing form and things will really have to click this weekend given the presence of McLaren, Renault, Ferrari and of course the confident Red Bull Racing team.

"The Monaco Grand Prix is my home race and it's always an enjoyable weekend. Formula One brings a real atmosphere to my home town and it's very special to have all of my family and friends there to support me over the weekend." said Rosberg. "Living so close to the track is helpful too! After a rewarding first four races, Barcelona was disappointing, so we will hope to see an improvement for Monaco and we will work hard to understand our issues from last weekend. Monaco is a completely different circuit with its own unique challenges and characteristics so it will be interesting to see how the car goes there. I had a good race last year, qualifying and finishing in sixth place, so it would be nice to go a few places better this time."

It will be crucial for Mercedes to place their cars as high in the order as possible during qualifying if they're to have a chance of scoring decent points, something Schumacher finally achieved last weekend. His revitalized performance on Sunday has encouraged the seven-time World Champion considerably and he brings renewed confidence into this weekend's event. "I have always liked to drive in Monaco and that's why I am really looking forward to competing there this weekend. " said Schumacher. "The Monaco Grand Prix certainly adds something very special to the Formula One calendar and driving through the streets of Monte Carlo is undoubtedly unique.

We go there and hope that the characteristics of the street circuit suit our car better than in Spain last weekend. On the other hand, we should be careful to expect too much this time as we have seen in Barcelona that there is still a lot of work ahead of us. So, other than having achieved my best result so far this season, I have taken with me a lot of motivation to work even harder with our engineers to improve the car further."

Last week BBC commentator Jonathan Legard reported that Schumacher had an extra spring in his step ahead of the Barcelona race. According to Legard, that usually means Schumacher has something up his sleeve, and sure enough he did. It'll be interesting to see if Schumacher carries the same spring in his step in Monaco on Thursday where the first free practice gets underway.

Mercedes GP CEO Nick Fry seems to think so, and told Autosport yesterday that Schumacher had recaptured his "sparkle". www.autosport.com/news/report.php/id/83514. He also admitted however, that the Red Bull team has at least half a second on them and that therefore there was a lot of work to do if Mercedes hope to catch them.

(The Mercedes GP Petronas team's ability to improve has a lot to do with the "brains trust" of team principal Ross Brawn, left, and CEO Nick Fry, right. Fry admitted early this week that they were half a second off the pace of Red Bull Racing. Photo courtesy of Mercedes GP Petronas) 

Fortunately the slower Monaco circuit is a bit of leveler in terms of advantage, since the outright pace of the front runners and more powerful cars is negated a little by the twisty circuit. Monaco has a propensity for throwing in far more variables than a standard sweeping track. Overtaking is very difficult, back markers are hard to dodge and the slightest loss of concentration could spell disaster, since the street circuit's barriers are notoriously unforgiving on race cars built on the edge of their design limits.

Accidents mean yellow flag incidents and suddenly a driver's comfortable lead is whittled down to nothing and he/she has to fend off the pack again. If you throw rain, and more cars on the circuit this year, with Virgin, Lotus and HRT struggling for pace with entirely new cars, it's going to provide more than the usual challenge for the leading teams.

Michael Schumacher has the lap record at the circuit, a 1:14.439, which he captured in 2004 with of course, Ferrari.

Nathan can be contacted at pricklyhedgehog@yahoo.com and welcomes your comments and suggestions, or you may post below.

 

Source : http://www.examiner.com/x-37065-Mercedes-GP-Examiner~y2010m5d11-Nico-Rosberg-and-Michael-Schumacher-express-readiness-for-the-Monaco-GP

READ MORE - Nico Rosberg and Michael Schumacher express readiness for the Monaco GP

Mercedes-Benz GP Petronas F1 Chinese Grand Prix Race Facts

In anticipation of the Chinese Grand Prix on April 18th, we've got a detailed look at the track and a variety of other F1 facts

 

15 April 2010 | CDanielson

International motor racing came to China (i.e. the People's Republic of China) first in the mid nineties with races of the BPR Series, a sports car championship.  They staged races on a temporary street circuit in down- town Zhouhai south of Hong Kong.  In 1996, the race moved to a new track outside the city and the organisers hoped for a Formula One Grand Prix in China already at that time, however, the track didn't match the requirements of the FIA.

The Shanghai International Circuit is located in the countryside to the Northeast of Anting Town, Jiading District, Shanghai City.  The whole site covers an area of 2.5 square kilometres with the grandstands offering seats for about 200,000 spectators.  More than 2 million cubic meters of earth material were filled into the area of the auto racetrack and nearly 40,000 batches of pile foundation were laid into the racetrack area for consolidating ground foundation. The steel used in the top of the primary stand reached over 5,000 tons of a total 12,000 tons used for the entire project.  The track which has the shape of the Chinese symbol 'Shang', which translates as 'high' or 'above' was completed within 18 months.

The Shanghai International Circuit is the biggest race track in Asia with a grand stand capacity for about 200,000 spectators.  It cost 240 million US dollars and matches the latest standards.  The track was designed by the leading architect Hermann Tike.

Two years ago, McLaren Mercedes driver Lewis Hamilton started from pole position, posted the fastest race lap and won – an important step towards his World Championship title which he clinched two weeks later in Brazil.

Track Records:

• Lap Record – Michael Schumacher (Ferrari) 1m32.28sec (2004)

• Fastest Lap 2009 – Rubens Barrichello (Brawn Mercedes) 1m52.592sec

• Pole Position 2009 – Sebastian Vettel (Red Bull Renault) 1m36.184sec

To learn more about the Chinese Grand Prix, the Shanghai International Circuit, and a variety of other interesting F1 information, we invite you to view the full gallery packed with digital racefacts below (don't forget you can click the images in the gallery to make them easier to read).

READ MORE - Mercedes-Benz GP Petronas F1 Chinese Grand Prix Race Facts

Petronas ‘Keen to Expand’ in Indonesia: Hatta

Malaysian state oil and gas company Petronas plans to expand its investments in Indonesia, including in the upstream sector, Coordinating Minister for the Economy Hatta Rajasa said on Wednesday.

“They expressed a commitment to expand investment in the upstream and downstream sectors of the oil and gas industry,” he told reporters following a meeting with the president of PT Petronas Niaga Indonesia, M. Ibrahimnuddin M. Yunus, and Malaysian Ambassador Zainal Abidin M. Zain.

“When the Energy Ministry opens tenders for new oil and gas areas, we’ll push [Petronas] to participate,” Hatta said.

He explained that the government wants to encourage firms like Petronas to look for new oil reserves in remote areas because of declining production in the country’s existing, mature fields.

He did not provide details. Yunus could not be immediately reached for comment.

The Energy Ministry announced on Monday plans to open tenders for 35 oil and gas blocks this year, most of them in eastern Indonesia.

Minister of Finance Sri Mulyani Indrawati warned earlier this month of a likely shortfall in the country’s oil production this year due to aging wells.

Efforts to lure investors into new oil and gas areas have been relatively unsuccessful. A tender for new oil and gas working areas last year was widely shunned because of uncertainty over cost recovery for oil and gas projects. Only five of the 16 blocks offered by the government in December attracted successful offers.

The government is planning to issue a new regulation on cost recovery in the oil and gas sector, which some said would put a cap on the expenses that can be claimed back by oil and gas contractors from the government.

In December last year, Petronas won the rights to distribute subsidized fuel in Medan, North Sumatra, ending the monopoly of state-owned PT Pertamina. The Malaysian company began distributing non-subsidized products here in December of 2005 and now operates 19 gas stations in Greater Jakarta, Bandung and Medan. The company reportedly expects to have up to three more gas stations by 2011.

However Petronas is less aggressive in the Indonesian upstream oil and gas sector. Out of the six oil and gas blocks it owns, two will reportedly be relinquished to the government because they lack prospects. They are the Karapan block in East Java and the Northeast Madura offshore block.

The remaining four blocks are still in the exploration stage with the Ketapang offshore block in East Java likely to start production in the near future.

(Sources : http://www.thejakartaglobe.com/business/petronas-keen-to-expand-in-indonesia-hatta/368155)

READ MORE - Petronas ‘Keen to Expand’ in Indonesia: Hatta

Mercedes confident Michael Schumacher will shine

Rosberg has out-qualified and beaten Schumacher in each of the first three races


Michael Schumacher's Formula 1 rivals would be "foolish" to write off the seven-time world champion, Mercedes GP chief Nick Fry has warned.

Fry is convinced Mercedes can build on Nico Rosberg's third-place finish in Malaysia and expects the German team-mates to challenge for more podiums.

"We've got an extremely strong team and anyone who underestimates us is fairly foolish," Fry told autosport.com.

"Every race Michael is learning a bit more and it is all coming together."

Schumacher returned to F1 this season after a three-year break but has only collected nine points from the opening three grands prix and is trailing leader Felipe Massa by 30 points.

And 41-year-old Schumacher, who suffered the team's first retirement in Malaysia after losing a wheel nut, has also been out-qualified and beaten in each of the three races by Rosberg.

But despite being slightly off the pace in the early grands prix, Fry hailed the impact his veteran driver has had on the team.

"Michael is, for me, quite remarkable," said Fry.

The level of feedback he gives is something that I have never seen before, and is just not in the debriefs.

"When you have the headphones on you hear amazing things. In qualifying he was driving around almost giving a commentary.

"He has taken the disappointment of what happened in Malaysia very well.

Schumacher has no doubts over F1 return

"He has taken away the positives again. I would not underestimate him."

The Mercedes team has so far struggled for pace in comparison to Red Bull, McLaren and Ferrari, each of whom has a win under their belt.

However, Rosberg's finish in Malaysia was the team's first podium after three races in 2010.

And Fry is adamant the team, which won six of the first seven races in its guise as Brawn GP last season, will be competitive.

"We've got excellent people. I would say we still have the best technical leader in Ross [Brawn], we have the best manufacturer and engine provider in F1, and we have two phenomenal drivers," explained Fry.

"All of that means that we are going to be strong, and we have the tools in terms of the money to do a very good job.

"I am very optimistic. We will be strong this year. Whether we can win it, who knows, but I think we will be there or thereabout."

READ MORE - Mercedes confident Michael Schumacher will shine