PETALING JAYA: Malaysia now has 19 biodiesel production plants capable of generating about 1.5 million litres per month, says Datuk Seri Dr Ahmad Zahid Hamidi.
The Deputy Prime Minister said that the expansion of biofuel production, which has been presented to the National Economic Action Council, involves collaboration between government agencies and private plantation companies.
Ahmad Zahid said this during a press conference after officiating at the opening of the RisSmart Grocer supermarket here on Sunday (April 19).
He added that the 19 plants are currently producing biodiesel blends ranging from B15 to B50, with plans to further optimise output by utilising sludge, a by-product of crude palm oil production.
“About 35% of this sludge can be fully utilised to produce biofuel as well as Jet A1.
“This initiative has already begun, and MTEN has, in principle, accepted the proposal,” he said.
Ahmad Zahid said the government would coordinate efforts with relevant agencies and companies to ensure production costs remain low through greater synergy among the 19 plants.
“With mass production, we expect overall costs to decline and prices to become more competitive,” he added.
He said that the viability of biodiesel has been proven through various tests, including pilot projects conducted in collaboration with PETRONAS and vehicle manufacturers.
“In my view, as stated previously, there is no doubt about the capability of this biofuel. It will help stabilise and reduce diesel prices in the country,” he said.
Separately, Ahmad Zahid, who is also the Rural and Regional Development Minister, said efforts to support commodity prices are ongoing, pointing to measures to strengthen the rubber sector.
He said that while Prime Minister Datuk Seri Anwar Ibrahim had announced an increase in subsidies from RM2 to RM2.50, additional steps by the Rubber Industry Smallholders Development Authority (Risda), including acting as a key buyer, have helped improve prices.
