Alvin Foo, Straits Times 4 Apr 08;
SINGAPORE can be a key trading hub for the fast-growing Asian biofuels industry, said speakers at a regional conference in the Republic yesterday.
The country can capitalise on its strong reputation as a fuels trading centre, while serving as a link between South-east Asia and the rest of Asia.
Mr Mat Stone, the biodiesel editor of the daily Argus Biofuels report, said: 'Singapore's a natural trading hub with a very developed services industry. It could be a centre for liquidity, a place for buyers and sellers to meet.'
The managing director of biofuels trader Vertical Asia, Mr Henri Bardon, said Singapore is an ideal centre for the biofuels trade, noting that 'it's already used as a fuel platform'.
'Soon, its role as a trading hub will be further enhanced to include biofuels. It's a place where I can blend my products and ship them.'
Dr Rosediana Suharto, executive director of the Indonesian Palm Oil Board, said at the one-day conference that Singapore could capitalise on its rich history as a trading nation to reduce trade barriers for biofuels.
Trade is not the only role Singapore can play, noted other speakers at the Argus Biodiesel Trading In Asia conference, organised by Argus Media.
Ambassador Holger Standertskjold, head of the European Commission's delegation to Singapore, highlighted last December's $1.2 billion investment by Finnish company Neste to build the world's largest biodiesel facility in Singapore.
He added: 'Singapore has an important role to play as a leader in the region. It's also a leading research hub and there's much more that we need to learn about sustainable biofuels.'
Asia's biofuels sector will be spurred by economies such as South Korea and Taiwan opening up to alternative energy.
There are also untapped potential markets such as China and India.
The industry could potentially benefit from a recent European Union directive to raise its share of renewable energy use to 20 per cent by 2020, with a 10 per cent target for transport fuel.
Mr Standertskjold said this could open up a new market for Asian producers if the biofuels are 'sustainably produced'.
