Malaysia to expand biodiesel program in phases, Minister says
The Plantation and Commodities Minister announced on Tuesday that Malaysia will expand its palm-based B20 Biodiesel Programme?nationwide, in phases. This is to take into consideration the price sensitivity of palm oil compared to petroleum prices.
Malaysia, the world's 2nd largest palm oil producer, currently mandates 10% biodiesel for the transportation industry. However, a 20% mandate was implemented in the federal territories of Labuan and Langkawi Island, as well as the state of Sarawak, except the town of Bintulu.
The government is under pressure to speed up the biodiesel program due to the soaring crude oil price caused by the Iran War and the closure of the Strait of Hormuz.
Noraini Ahmad responded to Noraini's questions by saying that the government was committed to implementing measures to gradually increase the use of biodiesel over time.
She said that most areas in Malaysia still use a B10 mix for transportation. "Therefore there is still significant room to increase the national biodiesel mix from B10 up to B20 or B30."
Indonesia, the world's largest palm oil producer, has already implemented its mandatory B40 programme. It plans to implement B50 by July of this year. Prior to this, Indonesia's stricter domestic blending requirements caused a global shortage of palm oil, which made it more expensive than other oils.
Noraini stated that Malaysia's biodiesel produced will reach 975,207 tons by 2025. This means biodiesel plants are operating below their maximum capacity of 2,36 million?tons.
She said that upgrading the blending depots across the country should be a priority.
She added that under a five-year program,?allocations were approved for upgrading the biodiesel mixing depot?facilities in Sandakan and Tawau to B20/B30 to support low carbon alternative fuel use.
Noraini stated that the project to upgrade the biodiesel mixing?depot will be implemented in phases. This will allow for infrastructure upgrades to be made in a planned, effective and efficient manner in accordance with current financial conditions in the country.
(source: Reuters)
