Malaysia and China have signed two memoranda of understanding (MoUs) on the use of palm-based biofuel collaborative research and development, as well as rubber research.

Prime Minister Tun Dr Mahathir Mohamad, who is on his official visit to China, and Chinese Premier Li Keqiang witnessed the signing of the MoUs in Beijing.

In a statement, Malaysia’s Primary Industries Ministry said the agreement on collaborative research and development on the use of palm-based biofuel would include technical research on the suitability and effect of palm biodiesel on vehicles, industry and the environment.

“Palm-based biofuel offers huge potential as a source of renewable energy which is environmentally friendly and sustainable. This augurs well with China’s Green Energy Policy, which targets the use of 15% non-fossil fuel by 2020.

“Under the Medium- and Long-Term Renewable Energy Development Plan released in August 2007, China aims to achieve a production target of two million tonnes of biofuel by 2020,” the statement said.

The palm-based biofuel MoU was signed by Malaysian Palm Oil Board Director-General Datuk Dr Ahmad Kushairi Din and Tsinghua University Vice-President Professor Yang Bin.

“The agreement is expected to further strengthen trade and enhance research collaboration in the area of palm-based biofuel,” said Malaysia’s Primary Industries Ministry.