The increase in the biodiesel mandate from B10 to B15 (which happened on June 1) will reduce Malaysia’s reliance on export markets, Federal Land Development Authority (Felda) chairman Datuk Seri Ahmad Shabery Cheek has said, according to a Bernama report.
“Export markets are good as we earn foreign exchange from them, but sometimes they impose various conditions, quotas or taxes. If our own country uses it (palm oil), it will benefit the domestic plantation industry and protect settlers’ incomes,” he said, adding that the B15 mandate would also encourage industry players to ramp up biodiesel production capacity, which would help maintain palm oil price stability in the future.
“Malaysia can actually further increase biodiesel use in the future, given the country’s capacity to produce the fuel. The use of palm oil for biodiesel could potentially be raised to about five to six million tonnes a year without affecting domestic needs, thereby reducing the nation’s reliance on export markets,” said Shabery.
Malaysia currently has 20 biodiesel plants with sufficient capacity to support up to a 30% biodiesel blend but most are operating below capacity because demand is currently limited to B10 at petrol stations and B7 in certain industrial sectors.
The nation produces about 20 million tonnes of palm oil a year – three million tonnes are used for food needs such as cooking oil, margarine and related products, while one million tonnes are used for biodiesel. Therefore, Malaysia still depends on export markets for 15-16 million tonnes.
Comprising 15% palm methyl ester (PME) and 85% petroleum diesel, B15 biodiesel replaces the B10 blend at no additional cost to the end user. There are plans to step up to B20, B30 and maybe even B50 in the future. Do you drive a diesel vehicle? Here’s what some carmakers – including Isuzu, Mazda, Hyundai, Kia, Ford and Mitsubishi – have to say about their engines running B15.
Looking to sell your car? Sell it with Carro.
ROTFLMAO B100 aka pure cooking oil average cost rm4.58/L is way cheaper than B20 bio-diesel