SOUTH-EAST ASIA: Pure palm biodiesel (B100) has the potential to become a competitive alternative to conventional diesel, thereby reducing fuel costs and enhancing national energy security.
According to Felda Chairman Datuk Seri Ahmad Shabery Cheek, B100 is among the world's first biodiesels without fossil fuel blending, unlike current blends such as B7, B10, or B20.
Previously, B100 was viewed only from a sustainability perspective, given its cleaner, renewable properties. However, high production costs were the main obstacle.
“Back then, the cost of B100 reached around RM4.40 per litre, more expensive than regular diesel. That's why it was hard to implement widely,” he said during a press conference at Menara Felda on Tuesday.
“But in today's global crisis, B100 offers a new answer because its cost is now more competitive compared to diesel in the market.”
He explained that current industrial diesel prices are around RM7 per litre, while B10 is lower at about RM6.02 per litre. Meanwhile, B100 production costs range from RM4.40 to RM4.50 per litre, depending on crude palm oil prices.
“This provides a significant savings margin for the industry,” he added.
Ahmad Shabery said widespread biodiesel use could reduce operating costs for the transport, fisheries, and industrial sectors that rely on diesel.
He stressed that the government's fuel subsidy burden has soared to about RM6 billion per month, compared to RM700 million previously.
“The pressure on the government is immense. So we are trying to offer a solution, not add to the burden,” he said.
On production capacity, Malaysia produces about 20 million tonnes of crude palm oil annually – theoretically enough to meet domestic diesel needs.
“However, the main constraints are processing capacity and still-low market demand. Many plants are operating below capacity because biodiesel demand wasn't high before. But capacity can be increased if clear policies are introduced.”
He suggested that the government gradually increase the biodiesel blending rate at petrol stations from B10 to higher levels, such as B20 or B30.
Felda itself will begin using B100 across its entire ecosystem as a pilot step. Tests on vehicles over 15 months and 50,000 kilometres showed no major issues.
“This proves it's practical and safe to use. Our principle during a crisis is to find solutions. We already have the resources, so why continue to rely on imports?” he said.
For the record, the use of biodiesel is also in line with Malaysia's commitment under the Paris Agreement and the target of achieving net-zero carbon emissions by 2050. B100 Biodiesel is able to significantly reduce greenhouse gas emissions compared to fossil diesel, thus supporting the country's transition towards a low-carbon economy.
