Malaysia to raise biodiesel blend mandate from B10 to B15, starting with B12 rollout – Economy minister

Malaysia is set to increase the biodiesel blend mandate from B10 to B15, beginning with an initial rollout of B12 biodiesel in order to strengthen the nation’s energy security, according to economy minister Akmal Nasrullah Mohd Nasir, reported The Star.

The move to B15 biodiesel will not incur additional expenses because it will make use of Malaysia’s existing biodiesel blending infrastructure, and the increased use of biodiesel is a strategic move to prolong Malaysia’s domestic diesel supply, the economy minister said.

Biodiesel blending mandates are policies requiring a specific percentage of renewable fuel, which is typically palm oil-based methyl ester (PME), to be mixed into fossil diesel, according to the report.

“The ongoing B10 implementation proves that the foundation for this already exists. Therefore, the government has agreed to increase the biodiesel blend rate to B15, beginning with B12,” Akmal Nasrullah said.

Meanwhile, the government has laid out a biofuel mitigation plan that includes the upgrading of depots to accommodate B20 and B30 blends under the upcoming 13th Malaysia Plan, and preparations are also underway for a B30 mandate specifically for the commercial and public transport sectors, the economy minister continued.

Malaysia to raise biodiesel blend mandate from B10 to B15, starting with B12 rollout – Economy minister

The government’s B20 biodiesel programme was officially launched in February 2020

“The government will continue to monitor global developments, ensure our energy supply remains sufficient, and accelerate reforms towards a more resilient energy system as a national strategic necessity,” he said.

The economy minister pointed out that Malaysia has a lot of untapped potential in the biodiesel sector, having produced 975,207 metric tonnes of biodiesel, despite having a total production capacity of 2.36 million metric tonnes.

“This shows that the industrial foundation, supply chains, and blending capabilities are already in place and only need to be systematically strengthened to provide greater benefits to the country,” he said.

It remains to be seen if the “premium” B7 blend will stay as it is, or also have its biofuel content increased, as with the regular blend of diesel. As of April 9, the Euro 5 B10 diesel blend is priced at RM6.72 per litre, while the Euro 5 B7 blend is priced 20 sen higher at RM6.92 per litre.

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