B10 biodiesel programme on course

"I plan to visit the relevant minister in Singapore. It is very sad that it (findings) comes from our neighbour,

KUALA LUMPUR: The Government is confident of implementing the B10 biodiesel programme this year, said Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas.

He said the move was in line with the country's commitment as a member of the Council of Palm Oil Producing Countries with Indonesia to increase the usage of palm oil in biodiesel.

"Indonesia is currently implementing B15 and is moving towards B20. We have informed them that we will move to B10 as soon as we feel it is practicable," he told reporters after delivering a keynote address at the Palm and Lauric Oils Price Outlook Conference and Exhibition 2016 (POC 2016) in Kuala Lumpur on Tuesday.

He said the ministry was having extensive consultation with all stakeholders to ensure the acceptance of the policy.

"Some testing need to be done and final discussions will be carried out to make sure the implementation will be as smooth as possible," he said.

On Malaysia's slower implementation of biodiesel programme compared to Indonesia, Unggah said it was due to the different structural systems in two countries as well as the cost involved and the availability of crude palm oil (CPO) stock.

"We want to be practical. For us, we feel that B10 is sufficient at the moment in view of our stock and the cost involved," he said.

Nevertheless, Uggah said, he was confident Malaysia has efficient facilities to make the new blend of biodiesel as soon as possible after the decision is made.

"As far as facilities are concerned, Malaysia has set up an efficient system which can blend the new biodiesel within two days," he said.

On the export tax on palm oil, Uggah said it would only be enforced in April if the average CPO prices in March reached RM2,250 per tonne.

"We will see the price for March and determine the tax in April. As soon as the price touches RM2,250, the tax rate will be at 4.5%," he said.

Themed "Managing Market Uncertainties: Our Global Solution", POC 2016, which runs from Monday to Wednesday, covered robust conversation on price and market outlook and opportunities in the palm and lauric oils industries. - Bernama