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But some environmental groups are convinced that Palm oil can't be produced sustainably at reasonable prices. Part of the reason palm oil is now relatively inexpensive is because of poor environmental practices and labor abuses, they say.
Still, some Dutch companies like Biox, a young company fully devoted to a solution and are banking on this biofuel.
Biox has applied to build three palm oil power plants in the Netherlands ;the first one gained approval just last week. It is currently auditing its plantation and refineries in Indonesia for sustainability .
“Yes, there have been bad examples in the palm oil industry,” said Arjen Brinkman, a company official.
“But it is now clear that to serve Europe’s markets for biofuel and bioenergy, you will have to prove that you produce it sustainably — that you are producing less, not more CO2.”
