Will biofuel projects in Southeast Asia become white elephants?

Southeast Asia's attempt to join the global biofuel development has not been very successful, despite the large amount of subsidies and incentives allotted for biofuel projects. The outcome of these projects has failed to meet expectation due to overrated assumptions and shortsighted policies. Utilization of edible feedstock such as palm oil and sugar cane for biofuel has disrupted the fragile industry due to the fluctuations of feedstock prices. The appropriate research on jatropha to prove its economic and environmental feasibility as energy crop has not been performed. Biofuel development in Southeast Asia remains at an early stage of development and requires highly intensive monitoring and strict legal enforcement to ensure future success. (C) 2010 Elsevier Ltd. All rights reserved.