KUALA LUMPUR: Malaysia is set to enter a new phase in its energy transition amid a global supply crisis, with the biodiesel blend rate in Peninsular Malaysia to be gradually raised from B10 to B15 starting Monday (June 1).
The move by the government in the face of global energy market volatility is aimed not only at reducing reliance on imported fossil diesel, but is also seen as a two-pronged strategy to enhance energy security and increase demand for locally produced palm oil.
The implementation will see B15 biodiesel comprising 15% palm oil-based biodiesel, known as Palm Methyl Ester (PME), and 85% petroleum diesel, compared with the existing B10 blend of 10 per cent PME, without requiring engine modifications for most diesel vehicles.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi previously said the government was targeting biodiesel production in stages as an initial step before the blend rate is increased according to market suitability and industry capabilities.
He said that by-products from the palm oil industry, including sludge from crude palm oil production, have the potential to be used in biodiesel and aviation fuel production, creating a new value chain in the country’s commodity sector.
Ahmad Zahid also views biodiesel as a new catalyst for the rural economy, through the involvement of agencies such as the Federal Land Consolidation and Rehabilitation Authority (Felcra), the Central Terengganu Development Authority (Ketengah) and the South Kelantan Development Authority (Kesedar).
The government has assured that the implementation will be carried out in a planned manner, taking into account the country’s palm oil supply capacity, industrial preparedness and existing infrastructure.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad palm oil usage for B15 implementation is estimated at around 0.8 million tonnes annually, significantly lower than the domestic supply surplus of about four million tonnes per year.
She therefore emphasised that the implementation will not affect the country’s palm oil exports, which currently stand at around 16 million tonnes per year.
Meanwhile, University Putra Malaysia Biorefinery Complex head Prof Dr Hidayah Ariffin said higher biodiesel usage could extend the country’s diesel stockpiling period and help ensure supply stability if the global energy crisis linked to the Middle East conflict involving the United States, Israel and Iran persists.
Concerns over the suitability of biodiesel for vehicles are also being addressed by the government, with Economy Minister Akmal Nasrullah Mohd Nasir assuring that there are no issues with engine specifications, as Malaysia’s vehicle standards already provide for biodiesel blends of up to B20 since 2020.
Akmal Nasrullah said the use of B20 has already been introduced in several areas, including Langkawi, Labuan and Sarawak, without any major issues that could be cited in relation to alleged engine damage.
The National Biodiesel Programme began with B5 in 2011 before being expanded to B7 in 2014, followed by B10 and B20 in stages between 2019 and 2020.
Malaysia currently has 19 licensed biodiesel plants capable of supporting the implementation of B15 and the government’s long-term plans to raise the blend rate to B20, B30 and potentially B50, in line with the national green agenda.
In addition, the use of biodiesel produced from renewable sources is expected to reduce greenhouse gas emissions and support Malaysia’s commitment to low-carbon development and a more sustainable energy transition. - Bernama
