# ABJ - Australian Biodiesel Group



## zeezee1962 (13 June 2007)

anyone have any thoughts on ABJ Transfield have been buying up big and the stock is a round its all time low 
could this be ready to take off ?
could transfield be looking at it as a take over ?
any thoughts


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## shinobi346 (20 June 2007)

I'm wondering about this too. They now have majority holding of the company and if they want to take it over, at current prices, it won't cost them very much.


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## djones (21 June 2007)

"Issue of shares in connection with rights issue and sub-underwriting agreement"

They werent "buying" up big.


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## shinobi346 (12 July 2007)

*Possibility of trialling biodiesel powered Super Buses in Brisbane*

***************
Super bus trial for Brisbane
Article from: The Courier-Mail

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    * Submit comment: Submit comment

Anna Edwards

July 12, 2007 12:00am

UP TO three 25m-long super buses that can carry 200 passengers could be trialled on Brisbane's busways, Transport Minister Paul Lucas revealed today.
Contrary to earlier reports on brisbanetimes.com.au, south-east Queensland would not be trialling 200 of the buses.

Similar buses, called LighTrams, run in Switzerland and are used as trolley buses powered by overhead cables.

Mr Lucas said if they were trialled in Brisbane, the buses would not be powered in the same way, but would run on biodiesel fuel and be used only on Brisbane's busways.

It is understood the "super buses" would look like the current "banana buses" but they would have an extra concertina tacked on the back.

"These super buses are about 25m long and can carry about 200 people - three times as many people as a normal bus and more than twice that of existing articulated buses," Mr Lucas said

"Even though they're twice the length of a standard bus they have the same turning circle as a standard articulated 'banana bus'.

"These vehicles are a good fit for Brisbane's growing busway network, especially given the increased passenger demand.

"The vehicles are very passenger friendly with low floors, aisles designed to maximise passenger flows, areas for disabled passengers, video surveillance and modern timetable information systems.

"LighTrams can run on a hybrid diesel electric engine and use considerably less fuel than the three standard buses required to carry the same number of passenger.

"When working off the diesel engine, LighTrams can also use 100% bio diesel, further reducing their impact on the environment.

Mr Lucas said a range of issues, including manufacturing timelines, weight and size standards for vehicles operating on Australian roads and mechanical work that would need to be undertaken to allow buses to operate in the country, needed to be considered before a trial went ahead.

Mr Lucas also announced $27 million boost to bus services today, which will result in 148 new buses on the roads of South East Queensland by June 2008.
***********************
http://www.news.com.au/couriermail/story/0,20797,22061320-3102,00.html?from=public_rss


One to watch out for as a successful trial could lead to long term contracts for ABJ as these buses are put into use. I'm only guessing ABJ would be involved but the buses are for the Brisbane City Council and ABJ's biodiesel plant is just north of Brisbane at Narangba. The govt likes to give preferential treatment to local businesses in the tender process too. It will be interesting to see what develops out of this. Even if ABJ isn't directly involved we can expect to hear a bit more about biodiesel from this.


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## doogie_goes_off (24 September 2007)

I got burnt on these guys a while ago, today they are having a bit of a run, would anyone like to do the honours of posting this on break out alerts?


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## shinobi346 (17 October 2007)

Just as I suspected, the Brisbane City Council are trialing ABJ's biodeisel in their buses.

"Brisbane Bus Trial
ABG advises that a trial currently being undertaken of biodiesel blends in Brisbane City Council buses is using biodiesel manufactured by ABG. Pre-blended B20 (20% biodiesel, 80% diesel) is supplied to the Brisbane City Council via a Brisbane fuel distributor. The trial focuses on 25 buses over a four month period and is expected to provide persuasive case study data on the benefits of
utilising biodiesel blends."


With petrol prices up there should be some renewed interest in alternatives as well.


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## tronic72 (31 October 2007)

I've had these guys on my watch list since they formed. 

Unfortunately for ABJ, our dollar makes importing fuel more competitive at the moment. If ABJ can ride out the current storm they will do some seriously big things. Australia has been so lucky as our rising dollar has offset the rises of fuel so the average Joe Public hasn't seen the hugh price rises many other countries have. 

I also think when (not if) the Labour party get into power Biofuel will get a better break than it has recently. 

ABJ shares have seen consistent resistance around the .06 mark so I think it's a good time to buy, for those who can stomach the risk.


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## tronic72 (1 November 2007)

I'm having trouble not seeing value in ABJ when the US oil price is now 96$ a barrel!

Apperently my post is not long enough so here's some filler.


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## nioka (7 November 2007)

tronic72 said:


> I'm having trouble not seeing value in ABJ when the US oil price is now 96$ a barrel!
> 
> Apperently my post is not long enough so here's some filler.




A lot of action here today with the company announcing a drastic cut in it's activities, accompanied by a large SP drop and fluctuating prices. If this is a stunt by the company to get some of the election pork barrel funds this could be the buy of the day. However if it means the company could fail then buying could be a catch the falling knife episode. Which is it?  I bought a few to be in the raffle.


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## shinobi346 (12 November 2007)

I don't think its a publicity stunt as all biodiesel making companies in Australia seem to be facing the same issues, most notably the rise in price of tallow.


I'm a bit divided on this issue of asking for govt help. On one hand I dont think its the govts role to prop up unprofitable public companies and on the other hand theres the environment.....

I'm glad I didn't buy this one when it was a buck.


Anyway another article on ABJ in the papers today:



Biodiesel star on wane
Kerrie Sinclair

November 12, 2007 12:00am

COMPLACENT government attitudes toward biodiesel are costing Queensland jobs and denying the population one of the greenest energy forms.

They are also bringing the local industry to its knees.

In Europe and the US – where the renewable fuels industry is strong – government mandates are driving growth.

EU initiatives have included tax exemptions on biodiesel and a requirement that a minimum of 5.75 per cent biofuel be blended in petroleum transport products by 2010.

The German Government requires compulsory blending of 5 per cent biodiesel in all petroleum-based diesel, with steep fines for non-compliance. In 1991, Sweden introduced the world's first carbon tax and it now leads the world in biofuels and is close to phasing out the use of imported heating oil.

Some biofuels have drawn severe criticism, especially ones that use palm oil and risk causing carbon dioxide release from massive deforestation needed to clear the way for palm oil fields. As have those that divert crops for fuel rather than food supply.

But the Narangba plant of listed Sydney-based company Australian Biodiesel Group – the nation's largest-capacity biodiesel plant – is what Environment Business Australia views as just the type needed to help cut greenhouse gas without creating other environmental or social problems.

It recycles tallow, or animal fat, from cattle abattoirs to produce a diesel substitute.

Deriving energy products by using up waste matter from the food chain exemplifies environmentally sustainable business practices, EBA chief executive Fiona Wain says. She says its technological advancement should be supported, along with governments leading the way by using the technology in their own vehicles.

ABG says tallow oil prices – which at the time of its April prospectus release were about $580 a tonne – had unexpectedly rocketed in the past months to $950 a tonne and could soon reach $975. This had made production unprofitable.

This week it halted production at its Narangba plant and says it won't resume until it makes financial sense to do so. The Narangba plant will be kept on standby but eight jobs there have been cut immediately.

It is the second Australian biofuel producer to reduce output in a week amid the surge in feedstock prices. Last week, Australian Renewable Fuels halted production at its two plants because of losses.

Babcock & Brown Environmental Investments – which has invested in a biodiesel plant in Darwin – is holding its annual general meeting today and declined to comment ahead of that meeting.

In September, an OECD discussion paper said only a few biofuel processors in the world could substantially reduce greenhouse gas emissions compared with gasoline and mineral diesel. ABG's method is one of them. The OECD said other conventional biofuel technologies delivered greenhouse gas emission cuts of less than 40 per cent compared with fossil fuel alternatives, when factors such as fertiliser use in crops was included.

It said many countries have regulations and fuel tax preferences to stimulate production but which don't distinguish between biofuel methods which could have wide differences in environmental costs and benefits.

Australian governments provided support for ethanol biofuel production – including federal import tax protection until 2011 – as well as marketing campaigns and government use of ethanol-powered vehicles. But no such backing has been given to the biodiesel industry, says Biofuels Association chief executive Bruce Harrison.

"We think there's a good case to be made for some government support just during our early phase. Right now, being at the fledging stage, we've got very high feedstock prices because of high global demand for tallow oil, including from China for its own manufacturing purposes, and it's difficult to ride it out given we're not a mature industry," Mr Harrison said.

The Australian Government last year revised fuel tax laws that stop heavy users of diesel from claiming a rebate on fuel excises if the producer had already claimed a rebate. Analysts said the change in the biofuels tax legislation – while not withdrawing government support for the biofuels industry – fell short of being conducive to substantial growth. According to ABG, wIth a non-mandatory target of 350 million litres of biofuel by 2010, the Federal Government would not meet its target and had not provided any meaningful startup support to the biodiesel industry.

"We suggest a state or federal mandate," ABG chairman John Keniry said.

"For example, mineral diesel to on average contain 2 per cent of biodiesel. The Federal Government is too laid-back. It claims it's got renewable energy targets and encourages business growth but then doesn't put policy settings in place to provide at least initial support."

Mr Keniry said the Federal Government had ruled out issuing mandates. The NSW Government requires 2 per cent of all oil and petrol distributors' volume to come from ethanol.

Mr Keniry said a similar Queensland government mandate for biodiesel could provide a commercial basis for the Narangba plants to grow.

A Queensland Tourism, Regional Development and Industry Department spokesman said the State Government had done more to support biofuels than any other state, was providing funding for research to develop alternative feedstock supplies and was also working on a "biodiesel action plan".


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## nioka (28 May 2008)

ABj may well be worth another look. In a report to the shareholders the company has made some interesting points.

  1. The company has no debt.
  2. The company expects to be trading cash positive during Q3 08.
  3. Consideration af a share consolidation.
  4. Possible name change to reflect new directions.
  5. Asset valuation Jan 2008 of $10.5M+
  6. Establish an entry into a new business area.

 With shares trading at .015c today there is a market cap of only approx $5.5M


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## avaramo (30 May 2008)

Even though the assets might be valued at AUD$10.5M, I would be interested to see what they would be sold for if ABJ went under, I bet a lot less than 10.5Mil.  Unfortunately the biodiesel industry seems to be dying a death and it will not be long before something better will come along to obliterate it into history.  I do hope ABJ makes some sort of a comeback although I have already kissed my money goodbye on this investment.


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## doogie_goes_off (1 June 2008)

Points of note on this one:

1.I sold when Howard killed OZ biodiesel after the strong endorsement of ethanol
2. The company is looking to do a 10:1 consolidation and IMO ABJ may need to look for a placement if their neutral earnings outlook falters. This consolidation would allow them to do a smaller discount by going to the 0.1c amount for placement IMO
3. The company has intellectual property of value
4. The company should return to profit/neutral position (EBITDA) in 08/09 fin Yr but probably still tracking backwards unless it switches to plant production
5. OZ Governments are pressured by oil companies and regulation is unlikely to change the regulatory framework
6. Growth potential is in the US and overseas.

Looking for a re-entry in August.:bonk::bonk:


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## nioka (1 June 2008)

doogie_goes_off said:


> Points of note on this one:
> 
> 1.I sold when Howard killed OZ biodiesel after the strong endorsement of ethanol
> 2. The company is looking to do a 10:1 consolidation and IMO ABJ may need to look for a placement if their neutral earnings outlook falters. This consolidation would allow them to do a smaller discount by going to the 0.1c amount for placement IMO
> ...




I've re-entered. I think the 1.5c was a bottom or at least very near a bottom. This government is less likely than tha last to be pressured by the oil companies and if the oil shortages keep coming and oil prices keep increasing, I think the public will pressure the government for some alternatives. This company has done well to survive and that must say something for the tenacity of it's management. I've been trading it and it owes me little so I'm happy to hold.


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## doogie_goes_off (3 June 2008)

Now holding some, I wish I'd bitten the bullet at 1.6c, I would be a bit more  than  why I don't follow my gut instinct.


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## nioka (3 June 2008)

ABJ moving along nicely again today. I'm showing a 50% profit in two days.I think there is more to come yet and maybe they are finally on the road to recovery. I think it is time I stopped trading it and hold now as an investment.


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## cranny (3 June 2008)

Have followed ABJ for a long time - b4 Transfield got involved - this is a real speccy - yes it owns assets - and if u r in then good luck - definitely would br trading it - wouldn;t put my savings in there


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## doogie_goes_off (4 June 2008)

I don't have a live charting tool, but I'd say that this one's breaking out now - I hold. Volume good and up another 0.004c.


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## nioka (4 June 2008)

doogie_goes_off said:


> I don't have a live charting tool, but I'd say that this one's breaking out now - I hold. Volume good and up another 0.004c.




 Looks good doesn't it. I don't know if you can call it a break out when you take into account how far it has fallen. Call it a break upwards and a very good one at that. There is a lot of buying strength and not a lot of sellers so it does look like holding up.


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## doogie_goes_off (4 June 2008)

OK, so I'm not a chartist (you wouldn't need to guess to hard from my dodgy chart posts), yes it's a break upward. Quite pleasing really, I wonder if there is someone buying for control?


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## nioka (5 June 2008)

After a good start this morning ABJ have gone to Pre open with buyers and sellers on 3.6c. I can't find an announcement. Maybe it is just a speeding ticket ??????

 Buyers increasing their bids, last sale at 3.8c


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## nioka (5 June 2008)

nioka said:


> After a good start this morning ABJ have gone to Pre open with buyers and sellers on 3.6c. I can't find an announcement. Maybe it is just a speeding ticket ??????
> 
> Buyers increasing their bids, last sale at 3.8c




 Back trading after the announcement that Scanline have increased their collection of used cooking oil by 15%.


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## Djayness (5 June 2008)

Interesting announcement although im not sure what exactly lies in for the long term. Reading up on the AGM it would seem their main goal atm is to break even and to "create value" for their shareholders, it didnt really go into what they plan to do exactly (unless I missed something)

Can anyone outline what ABJ plan to do in the future?


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## nioka (5 June 2008)

Djayness said:


> Interesting announcement although im not sure what exactly lies in for the long term. Reading up on the AGM it would seem their main goal atm is to break even and to "create value" for their shareholders, it didnt really go into what they plan to do exactly (unless I missed something)
> 
> Can anyone outline what ABJ plan to do in the future?




One thing I saw recently was the fact that they do have the technology of Biodiesel production worked out and they plan to sell that technology. There will be a lot of biodiesel plants required when the palm oil plantations being developed throughout asia come into production. I guess they will try and get a part of that action. Breaking even will allow them to stay in the business and still be there if biodiesel becomes competetive as oil becomes scarce. Maybe to be in ABJ you need to be a believer that oil production has peaked and we are on the downward slope regarding supplies.


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## Djayness (6 June 2008)

nioka said:


> One thing I saw recently was the fact that they do have the technology of Biodiesel production worked out and they plan to sell that technology. There will be a lot of biodiesel plants required when the palm oil plantations being developed throughout asia come into production. I guess they will try and get a part of that action. Breaking even will allow them to stay in the business and still be there if biodiesel becomes competetive as oil becomes scarce. Maybe to be in ABJ you need to be a believer that oil production has peaked and we are on the downward slope regarding supplies.




I was under the impression that the rise in shareprice was due to the prospect of brisbane transport deciding to trial biodiesel buses.


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## NickVC (6 June 2008)

What are people thinking abou where ABJ may go now.  I bought in at a good price 0.018, but am now contemplating whether or not I will hold  or perhaps take the earnings for fear of losing them again.


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## hangseng (7 June 2008)

nioka said:


> One thing I saw recently was the fact that they do have the technology of Biodiesel production worked out and they plan to sell that technology. *There will be a lot of biodiesel plants required when the palm oil plantations being developed throughout asia come into production.* I guess they will try and get a part of that action. Breaking even will allow them to stay in the business and still be there if biodiesel becomes competetive as oil becomes scarce. Maybe to be in ABJ you need to be a believer that oil production has peaked and we are on the downward slope regarding supplies.




I went to Kuala Lumpur recently and the use of Palm oil is a very big deal there. You could not pick up a newspaper without an article on Palm oil and bio-diesel use. It is even illegal to transport oils privately across borders, with one article showing police "seizing" 5ltrs of Palm oil from a car boot and charging the people for transporting Palm oil illegally.

ABJ is also waiting on confirmation of award as the technical supplier for an offshore plant. This will be an excellent kickstart for ABJ after being in the doldrums for so long.

Also don't just focus on oil use for bio-diesel. Algae use is increasingly being cited as an alternative. I would suggest that ABJ are clever enough to pick up on this.
"Microalgae have garnered considerable attention, since acre-by-acre microalgae can produce 30-100 times the oil yield of soybeans on marginal land and in brackish water. The biomass left-over from oil-pressing can either be fed to cattle as a protein supplement, or fermented into ethanol" 
source: http://gas2.org/2008/03/29/first-algae-biodiesel-plant-goes-online-april-1-2008/


I am actually very pro-biodiesel and have been for some time, for many logical reasons. The big aspect I am looking for is Govt support, for not only bio-diesel but all alternate enrgy sources. Govts of all persuasions tout the green alternative banner, however mostly fail in implementation . It is good to see Vic leading the way on this, dare I say being a died in the wool West Aussie . It is just a matter of time IMO and this aspect will turn in favour of companies like ABJ.

All in all I am becoming quite bullish on ABJ and decided to take a small position accordingly on the pullback yesterday, and will increase as more information comes to hand. For now they look quite positive.

Under the micro-scope 'Microalgae'


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## NickVC (10 June 2008)

i just posted a message in the "potential back door listing" thread re abj, as I thought that based on the recent agm it might be moving away from its core biodiesel business.  However, after posting that thread I had a look at the "market watch" for the day, and the biggest mover with a 600% increase was "austrefuel opt apr09".  The only reason that i can see for the massive increase in its price is an announcement today that included a statement that:

"The recent substantial increases in diesel prices in Australia have greatly alleviated the risks and exposures associated with high feedstock prices in biodiesel production. Sales contract negotiations currently underway indicate that commercially acceptable margins may once again be available to biodiesel producers and ARF seeks to capitalise on these returns for the benefit of its shareholders."

Lets hope that the statement is correct and that abj's biodiesel production is similarly now again commercially viable..and then they may not need to change their core business.


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## NickVC (12 June 2008)

The indicitive opening price at the moment is 0.025.  Toward the end of last week, it was going for max prices of 0.040+.  Where do people think this is heading....back down to its pre-break prices of 0.016  or thereabouts or perhaps bounce back up to the low to mid 0.030's ?


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## Xavier (22 June 2008)

Hi all,

I am new to this forum, please excuse me if my questions sound stupid

I have been watching ABJ and ARW for a while. IMO they are very good ones for short term trading since the oil price is set at record high and the share price for the two is at record low. With limited funding I am panicking which one to chose. I can't see any difference between them in terms of growth and value yet the movement and price difference between them is huge!

Is anyone here willing to give some insightful opinion on this one? Cheers


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## ca1987 (6 November 2008)

Trading Halt today. Not an expert in any way, very much an amateur so please don't take this as advice or an expert opinion. But isn't a rise of %80 the day before the trading halt (also with a spike of volume) a good sign?


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## shinobi346 (10 April 2010)

What happened to this company? I can't find anything on them even on the asx. Did they get bought? dismantled? merged with someone else?


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## So_Cynical (10 April 2010)

I was only looking at this mob around xmas time...or was it ARW :dunno:

http://www.smartcompany.com.au/clim...rgy-company-solverdi-worldwide-collapses.html



			
				smartcompany.com.au said:
			
		

> Renewable energy company Solverdi Worldwide collapses...Solverdi was formerly known as Australian Biodiesel Group until a name change in April 2009 following a restructure.
> Friday, 19 March 2010 09:24
> James Thomson


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## shinobi346 (10 April 2010)

Thanks. 

I was only really after finding out how their share price was doing since I sold them but I wasn't really expecting to find out they had collapsed. I'm glad I got out before that happened. At one point I really believed this company would get somewhere with their biodiesel but then I got annoyed at how they kept issuing new shares over and over and thats when I got out. They even had the BCC buses buying their diesel at one point too if I recall correctly.


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## So_Cynical (10 April 2010)

When i was looking at bio-diesel at xmas is was very clear the industry in general was in trouble due to high feed stock prices, i don't think the industry has much of a future out side country's with lots of palm oil.


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## JTLP (11 April 2010)

Palm Oil has become a big no no recently in big business. 

You can watch this youtube from treehuggers (usually I am anti Greenpeace due to their nuisance ways but I work for an FMCG and Palm Oil is now a big deal)

http://www.youtube.com/watch?v=QV1t-MvnCrA (don't know how to embed...apologies)

Why wouldn't ABJ or alternate fuel companies succeed?


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## So_Cynical (11 April 2010)

Palm oil is great for making bio-diesel because of it very high carbon content, (it will burn when put directly into a wick type lantern same as Kerosene) and well suited to mass production because its easy to grow, very drought resistant, very tough all round and a very high oil per hectare can be achieved (over 7000 litres per hectare per year)

Now unfortunately the Malaysians and Indonesian's in particular have gone palm oil crazy and have planted millions of hectares and are the worlds biggest producers with over 70% of world production between them..and have destroyed millions of hectares of forest to do that. 

So im concluding that bio-diesel production is well suited to Malaysia and Indonesia due to a massive supply of quality feed stock, keeping in mind that palm oil while great to cook with is terribly unhealthy to eat thus shouldn't be eaten and therefore should be used to make bio-diesel...in a perfect world of course.

IMO

http://en.wikipedia.org/wiki/Oil_palm
http://en.wikipedia.org/wiki/Biodiesel


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