Palm oil can be a cheap biofuel, but when forests are destroyed to make room for palm plantations, its use for augmenting gas and diesel fuel is not necessarily a good thing.

This report in the Telegraph discusses a British requirement for use of biofuels to augment gas and diesel fuel, but that

fuel companies are exploiting a loop hole which means they are not required to disclose the origin of nearly half the biofuel supplied to filling stations in 2009.

Palm oil is the cheapest fuel to buy and is used by most companies to meet part of their biofuels obligation.

However, it is also the most damaging to the environment due to the CO2 released when forest is burnt down to create plantations.


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