Still a long way before biofuel is on the market TEAMCAR - Imagine a world where a farmer could extract oil from his own crops, like palm, soy or peanut oil, and fill up the tank of his tractor. There would be no need to stop by at the gas station for petroleum-based fuels.

The farmer would neither run out of fuel -- so long as he was growing sustainable crops -- nor rely on conventional fuel, the price of which is sensitive to issues ranging from production cuts to political upheaval.

Some people might say biofuel self-sufficiency is a utopian scheme, while others have demonstrated it can be done.

In general, biofuel is any fuel that comes from biomass -- or living organisms or their metabolic byproducts. It can come from plants or cow manure, for example.

Many people think the idea of developing biofuel is a new one, but in fact it has been around for more than a century.

Nowadays, with declining oil production and ever increasing fuel consumption, the government has decided to promote biofuel to reduce soaring fuel subsidies.

On the other hand, however, we have to admit that oil palm is the most readily available source for biofuel both in biodiesel and pure plant oil (PPO) forms.

Indonesia is the second-largest producer of CPO in the world after Malaysia. But keep in mind
that Malaysian companies also have their oil palm estates on Indonesian soil.

However, since it is a long process, we can be sure that the price will not be much lower than that of petroleum-based fuels.  ¶ 5:59 PM