PUTRAJAYA: Malaysia targets to raise its biofuel mandate in the transport sector to B20 by 2020, from B10 currently, and for industrial sector to B10, from B7, according to Primary Industries minister Teresa Kok.
Higher mandates expected to use 1.3 million tonnes of crude palm oil each year, Kok said on Tuesday
Current mandate of B10 in transport sector from Feb. 1, B7 in industrial sector from July estimated to use 761,000 tonnes of palm oil annually.
Each RM100 a tonne increase in CPO price to generate additional RM2bil revenue for Malaysia, she said.
Malaysia is looking into a biodiesel stabilisation fund for biofuel prices, as well as to make biofuel more attractive for consumption, she added.
Primary Industries Ministry proposed it to cabinet and will need to discuss with other ministries including trade ministry to set up mechanism
Malaysia, Indonesia and Colombia will meet in Jakarta end-February to discuss palm oil issues especially EU’s Renewable Energy Directive which would restrict palm-biofuel, she said. - Bloomberg
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