The Malaysian government is looking to enhance the use of biodiesel in the country, and is currently in talks with stakeholders (automotive and petroleum-based companies) on the matter. This is according to the head of the Ministry of Primary Industries, Teresa Kok, in a report by Bernama.
Currently, B7 biodiesel is sold in Malaysia which is comprised of 7% palm biodiesel and 93% petroleum diesel. A push for the B10 blend (10% palm biodiesel and 90% petroleum diesel) has been in development for quite some time, and it was reported last month that the B10 blend mandate will be implemented in the second half of 2019.
However, fuel providers have come out to say that the B10 blend will only applicable to the Euro 2M standard diesel, while Euro 5 diesel will continue to be offered as a B7 blend. Meanwhile, car companies have voiced their concern about the usage of the B10 blend in their vehicles, while other organisations have claimed that there are no such problems.
Kok said there has been no developments as of late because discussions are still ongoing. “We must get the agreement of all parties but I hope Malaysia will move forward towards that direction just as what Indonesia has done,” she said.
The minister is referring to Indonesia’s decision to expand the use of biodiesel, which is a B20 blend there, to include all diesel vehicles in the country. The move is aimed at helping the country reduce its fuel import bill and revive the rupiah. Previously, B20 usage was limited only to subsidised diesel users as well as public service obligation (PSO) vehicles like trains.
“All ministries are ready. All fuel retailers and biodiesel producers are ready to clean their infrastructure, to identify what the problems are and then (carry out) mitigation. For example, cleaning tanks for those with machine filters etc. We have already prepared guidelines on how to blend,” said Rida Mulyana, director general of New Energy, Renewable Energy and Energy Conservation, in a Reuters report.
On the same note, Togar Sitanggang, a senior official at the Indonesian Palm Oil Association, said the B20 blend has been tested extensively by the country’s Energy and Mineral Resources Ministry with only minor differences to mineral diesel fuel – Indonesia has 19 biodiesel producers and 14 fuel retailers.
Back in Malaysia, the lacklustre pricing of crude palm oil (CPO), which is hovering around the RM2,200 per ton mark, has resulted in a massive stockpile of inventory of 2.19 million tonnes as of end-June 2018 – a 43% increase from a year ago.
A mandated switch to B10 or an even higher blend (B20, B25, B30, etc.) will surely help trim the excess amount of palm oil in reserve and help pump up CPO prices. Will you welcome the implementation of B10 biodiesel, or do you see a different path to take? Let us know your thoughts in the comments below.
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Thats all New MY can do with the excess palm oil after they din follow thru with Dr Mahs fight against EU discrimination, and pissing off China. Why not New MY just gip free cooking oil subsidi instead of this?
Bro Ruslan Bahari answer oredi,
this was also announced in 2010, and again in 2015… ain’t gonna happen. Why?
You speak of new Malaysia yet you want freebies?? Typical.
typical 60year Tongkat mindset. Remain status quo & irrelevant…
The usual solution with such excesses is to throw it away like what dairy farmers did with their excess milk, but we cant just drain palm oil into the rivers & seas.
Then why not provide ideas on what to do with the huge stockpile of palm oil that is no longer welcomed by EU or China (both our largest consumers) and automakers r wary of biofuels? We will remain status quo & irrelevant if we only have pipu who criticised without providing solutions.
The new government has no solution and sweeping this under the carpet. They might as well charter old oil tankers to store palm oil and then sink them in middle of the sea.
Which do you think is better B7 or B10
B20 like Indon.
And your solution is, John, giving it as a freebie? Do you think about the cost to the government? And the impact of that cost to the national economy? Of course you didn’t, because all you want is to benefit yourself.
Diesel is on the way out in EU, so no amount of biodiesel promotion here is going to help the end goal. You need a suggestion? Find new uses of palm oil; R&D is the only way to do it.
Thats no solution. R&D wud takes years to perfect and commercialise, meanwhile palm oil stockpile piles up with every harvest. Instead of letting it wasting away if biodiesel is no go, then better to gip it away free, no?
Who was it that promised; subsidised cheap petrol, free hiway, free PTPTN, free internet upgrade, free water, free bus, etc?
If U can believe promises made by politician, then U can believe Cow living in Condo.
What the f is RM1.50/L fuel promise then? Spending more on subsidies not same as freebies?
Yeayyyyyy….. wait… this was also announced in 2010, and again in 2015… ain’t gonna happen. Why? Because the motivation is more about clearing stockpiles. And the reality is, unless Brent rises to USD200/barrel, biodiesel will be priced too closely to regular fuels.
Don’t forget, it costs 3 sen extra to produce and someone has to pick up that bill….
just scrap this stupid scheme . the main purpose is to appease felda voters.
From a consumer and a diesel vehicle owner standpoint, the final decision point is clear: Whichever biodiesel blend claimed to be compatible and planned to be distributed to the market, must be recognized by vehicle manufacturers in order to avoid vehicle warranty loss.
More subsidized biodiesel must be given to fishermen groups for them to cari makan and cheaper go out to sea, cari ikan.
What is the progress of Euro 4m Ron 95? It’s near the dateline already…hmm….
The main reason our Gomen want to push(B10) is bcoz there is excess amount of palm oil in reserve.
The complaint from European Union on the negative of palm oil is not helping either bcoz the European & American is favoring Canola, Sunflower & Corn oil.
Its time more Malaysian buy more of our M’sian products that’s made from palm oil to help clear off palm stocks. I’m not asking anyone to boycott imported products here.
Pushing B10 will not help if car companies are not cooperating. Claiming who’s fault later will be a tedious & time consuming affairs which is better to avoid if you have a choice.
Does the end justify the means ??
U proceed with this, but car companies said nope, cannot apply to our diesel engine..and then what? Lol
If the government, ministries and ministers supporting this are willing to bare the possible direct and indirect damages done to the diesel engine due to bio-diesel use, then it has additional point for the car manufacturers to take the risk. the way it is now, the government, ministries and ministers want the car manufacturers to take up the support, risk and expenses for possible damages while they take profit in full without any accountability.
EV is the future, instead of palm oil in gasoline…
Funny, while Europe is killing down Diesel, we promote a so called “bio” diesel which is even worse than normal diesel. Nothing bio there: more ‘biodiesel’ means more money for palm plantation owners and more reasons for them to destroy bio forest. No improvement for your car, probably not much for your purse, but a great opportunity for palm oil cartel which can hide their oil that faces bad press worldwide behind the nice marketing name “bio” and make more profit.
You have no idea what and who is behind the oil palm bad press, do you? And you have no idea on the benefits of palm oil, and how sustainable the tree is and modern plantations are.