Biodiesel terminals for Sabah and Sarawak

KUCHING: Fifteen terminals with in-line blending facilities are under construction in Sarawak and Sabah to facilitate the implementation of the biodiesel (B5) programme.

Most of these terminals would be completed by the end of this year, according to Malaysian Palm Oil Board (MPOB) director-general Datuk Dr Choo Yuen May.

“Sarawak and Sabah will come on board soon (in B5 implementation),” she told StarBiz, adding that the Government funded the set up of the blending facilities’ terminals in collaboration with participating petroleum companies.

Sabah, Sarawak and Labuan are in the final phase of the B5 implementation. B5 is a blend of 5% palm methylester and 95% petroleum diesel.

Some 35 depots with in-line blending facilities in Peninsular Malaysia had been set up as at November last year.

Under the B5 programme, all diesel pumps in petrol kisoks would be replaced with B5 pumps.

The implementation of B5 was first launched in the central region (Putrajaya, Kuala Lumpur, Malacca and Negri Sembilan) in June 2011.

It was then extended to the southern region (Johor) in July last year, followed by northern region (Perlis, Kedah, Penang and Perak) in October, and eastern region (Pahang, Terengganu and Kelantan) in January this year.

Choo said when fully implemented nationwide, the B5 programme for both the subsidised and non-subsidised sectors would take up 500,000 tonnes per year from the local palm oil stocks.

She said three biodiesel plants in Sabah had been operational. The plants are owned by Global Bio-Diesel Sdn Bhd and SPC Biodiesel Sdn Bhd, both in Lahad Datu, and Green Edible Oil Sdn Bhd (formerly Green Biofuels) in Sandakan.

In Sarawak, the sole biodiesel plant completed here is owned by Senari Biofuels Sdn Bhd (formerly Global Bonanza). Another plant developed by Sarawak Oil Palms Bhd is expected to be commissioned soon.

According to MPOB’s website, some 30 biodiesel plants nationwide had been in operations or completed.

The Government had approved 60 biodiesel manufacturing licences with combined annual capacity of 6.5 million tonnes.

From B5, Dr Choo said the Government would mandate the use of B7 (a blend of 7% palm oil biodiesel and 93% petroleum diesel). When fully implemented, the B7 programme would have an uptake of 700,000 tonnes a year from local palm oil inventory.

Prior to its implementation, MPOB is getting feedback from interested parties including Japan Automobile Manufacturers Association, Malaysian Automotive Association vehicle manufacturers, SIRIM Technical Committee and Malaysian Biodiesel Association.