EORC wants to sell Enemalta biodiesel

A local oil refinery has proposed to supply all the national requirements for biodiesel to enable Malta to comply with the two per cent level needed to comply with our European Union accession treaty.

Pippo Psaila, commercial director of the Edible Oil Refining Co Ltd of Marsa, told The Sunday Times his company currently has a capacity to produce 12,000 tonnes of biodiesel. That is more than enough for local requirements to satisfy EU regulations that come into force in 2010 when the proportion has to increase to seven per cent of local consumption of diesel fuel.

With the liberalisation of petrol stations due to come into force next January, Mr Psaila said EORC would like to work with Enemalta so that the biodiesel will be blended with its diesel to satisfy the two per cent of the 150,000 tonnes Malta consumes each year.

There certainly is a monetary incentive since biodiesel on sale on international markets costs 30 per cent more. "From a price perspective we can compete any day,"

Mr Psaila said. "From a quality perspective we can also compete any day.

"All there needs to be is a willingness to move in line with what we have agreed in our accession treaty by Enemalta."

The EORC could sell its product directly to petrol stations but it would prefer to work with Enemalta not to have any confusion. Abroad, in countries like Germany, there are 2,600 petrol stations selling biodiesel and in France the blend is 5 per cent biodiesel.

Mr Psaila said the biodiesel produced by the EORC is currently made through the breaking down of oils and fats that are collected from local catering establishments and imported from abroad. The company also has plans to export biodiesel to neighbouring Sicily.

Speaking of the benefits of biodiesel, even as a blend, he said apart from its environmental win-win production, it also had a lubricating effect that replaces that of the sulphur that has been removed from diesel fuel and is currently causing much wear and tear, especially on big engines.

All diesel engines can run on biodiesel, he affirmed, which is retailing at up to 2c less than normal diesel.