On 1 June, Malaysia raised its biodiesel blend rate from 10 per cent (B10) to 15 per cent (B15).
Raising the bar
The biodiesel blend rate in Peninsular Malaysia has now changed from 10 per cent palm methyl ester (PME) to 15 per cent PME mixed with 85 per cent petroleum diesel. Though the blend rate has changed, motorists will not have to pay additional costs.
The raise from B15 to B20 was originally planned for 2025 but was delayed due to high upgrade costs.
The push for biodiesel takes advantage of Malaysia’s rich resources in palm oil, refineries and supporting infrastructure, and established supply and distribution chains.
Last year, Malaysia produced an estimated 975,207 tonnes of biodiesel while maintaining a production capacity of 2.36 million tonnes. Reports claim that Malaysia plans to gradually increase its biodiesel blend even further to B20 and finally, to B30.
Despite Malaysia’s robust capability to produce its own palm oil and biodiesel blends, its Ministry of Finance said that the country is still in need of crude oil imports.
Slowly but surely
Economist and international relations expert Ariff Othman advised that Malaysia’s gradual increase of biodiesel blends must be done “cautiously and in phases,” as reported by the Vietnam News Agency.
Increasing reliance on palm oil can still influence oil prices, specifically edible oil, leading to more investments in supporting infrastructure such as storage and distribution.
Othman told VNA that Malaysia’s use of biodiesel must be treated as “strategic insurance.” He highlighted that the pace of implementation must be maintained to avoid infrastructure and distribution bottlenecks and overall industry pressure.
Compatibility
Economy minister Akmal Nasrullah Mohd Nasir has reminded the public that B20 compatibility was made mandatory for all engines in vehicles in 2020, with the automotive industry given five years to prepare for this transition.
PaulTan reported that several car brands confirmed the compatibility of B20 with their respective models. These brands include;
- Isuzu (D-Max starting 2020, all variants)
- Mazda (BT-50, all variants)
- Hyundai (all diesel engines)
- Kia (all diesel engines)
- Ford (current generation Ranger and Everest)
- Mitsubishi (6th generation Triton)
If the transition is successful, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi claimed that use of B15 or B20 could save MYR 1.5 billion (AUD $524 million) annually.
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