Malaysia expands biodiesel program, looks beyond 5 percent blend

By Ron Kotrba | July 25, 2013

Malaysia is launching a B5 biodiesel mandate for its southern region, according to the Malaysian Ministry of Plantation Industries and Commodities, following the success of its program in central Malaysia that consumes 113,000 tons (roughly 34 million gallons) of palm biodiesel per year. MPIC says implementation of the biodiesel program in the south will create an additional annual demand of 37,270 tons, displacing about 11 million more gallons of petroleum diesel per year. Since July 1, 415 fueling stations across south Malaysia have been selling biodiesel blends. Once the B5 program is implemented nationwide in July 2014, the total target palm biodiesel consumption will reach 500,000 tons (150 million gallons) per year.

MPIC said the biodiesel program has contributed to a 44 percent increase in palm biodiesel production, from 173,220 tons (52 million gallons) in 2011 to 249,213 tons (75 million gallons) in 2012, while helping stabilize the price of crude palm oil through increased biodiesel demand.

But the government of Malaysia has already decided to move beyond 5 percent blends, according to MPIC. “To achieve this, the Ministry of Plantation Industries and Commodities through [the] Malaysian Palm Oil Board is formulating action plans, which include undertaking studies on the suitability of B10 (or at a higher blending ratio) as required by the Original Equipment Manufacturers (OEM), especially on engine warranty,” MPIC stated. “Other measures implemented include the use of B10 for MPIC and its agencies' vehicles, voluntary Palm Biodiesel Incentive Scheme, B10 trial with the Malaysian Fisheries Development Board, Kuala Lumpur City Hall, the Malaysian Armed Forces and Alam Flora, the national domestic waste company.”

MPIC stated the Malaysian government is committed to continuing the biodiesel program, taking into account its positive contribution to the palm oil industry and the well being of smallholders. “In addition, the biodiesel program is in tandem with the government's policy to reduce dependency on fossil fuel, energy security and promoting the image of Malaysia as one of the leading countries in utilizing renewable fuels.”

YB Dato Sri Douglas Uggah Embas, MPIC, launched the biodiesel program for the southern region at Shell Port Garage fueling station in Pasir Gudang, Johor.


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