SINGAPORE : The current global food crisis is casting a grey cloud over the sustainability of biodiesel as an alternative energy. And that is pushing industry players in the search for other options, including tapping into solar energy.

Consumers worldwide are feeling the pinch of rising food prices - but they are not the only ones. Biodiesel producers are feeling the heat too, as rising food prices push up their costs for feed stocks such as palm oil.

Two out of three biodiesel plants here in Singapore have already put a stop on production. Industry players said this leaves biodiesel producers such as Neste Oil, which is building a biodiesel plant here, looking for other options.

David Ernsberger, Editorial Director, PLATTS, said: "So far, the companies that have accepted the invitation to set up base in Singapore... haven't been having a very good experience, and it's been a real shock and a bit of a wet blanket for the industry in Asia.

"These companies that are based here in Singapore are finding it really hard-going, especially at a time when oil prices are above US$130 a barrel and this is supposed to be the first golden era of alternative energy. But so far, there has been nothing but misery."

With the challenges facing the biodiesel sector, some said companies should look skywards. They argued that Singapore's location on the sun strip makes solar energy a more viable and readily available option.

"Biofuels are seen, to some extent, as threatening world food supply. That isn't going to be the same with solar energy. In fact, solar has gone on better," said Ronald Oxburgh, former chairman of Science & Technology, UK House of Lords.

For Singapore, the opportunity lies in manufacturing.

Hannes Reinhard, head of Operation & Vice President (Asia), Oerlikon Solar, said: "Right now, the thing is that the adoption is not yet there. Governments are initiating activities towards it - with zero energy or green energy buildings - but the public sector is not able to adopt this right now because they do not have the space to put solar panels on the (buildings).

"And Singapore is limited in terms of the space to have large-scale solar farms. However, there are opportunities to manufacture equipment here which is beneficial for us."

Another energy option is wind. But some industry players said Singapore's lack of wind would cast doubts on the viability of wind as a renewable resource for the country. - CNA /ls