KUALA LUMPUR: The Plantations and Commodities Ministry plans to meet the Palm Oil Millers Association (POMA) to work out strategies to reduce carbon emission into the environment, its minister Datuk Peter Chin said.

He added the discussion would include possible incentives for millers who would upgrade their technology.

"We understand millers are sensitive to costs involved, hence we would explore various ways to address the cost issues," Chin said.

Since Feb 1, several Malaysia government agencies had imposed the use of biodiesel in their vehicles since Feb 1 this year while privately owned vehicles would have to use palm-based biodiesel by next February.

Chin said his ministry was discussing with oil companies on the infrastructure to supply biodiesel in Klang Valley and in the state of Sabah.

"The oil companies were very supportive of the (biodiesel) plan, but we still need to work out the logistics and the investments involved for the blending facilities," he said, adding that these facilities could run "in the millions" of ringgit.

Malaysia exported 182,108 tonnes of palm methyl ester (PME), worth RM610.7 million in 2008. In January this year, PME exports were 12,731 tonnes valued at RM30.19 million.