Kuala lumpur: The B15 biodiesel implementation in Peninsular Malaysia, set to begin on June 1, aims to enhance the nation's energy security without impacting palm oil export volumes. This initiative is expected to bolster the local palm oil industry and advance the national green agenda.
According to BERNAMA News Agency, Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad detailed that the transition from B10 to B15 biodiesel, which incorporates 15 percent palm oil-based biodiesel, was meticulously planned. The plan considered the industry's readiness, supply conditions, and existing infrastructure to ensure a smooth rollout. A comprehensive analysis of the country's palm oil supply capabilities confirmed that exports would remain unaffected.
Malaysia produces approximately 20 million metric tonnes of palm oil annually, exporting nearly 16 million tonnes. This leaves a surplus of around four million metric tonnes for domestic use. The B15 biodiesel implementation will require only about 0.8 million metric tonnes, ensuring no disruption to export volumes. During a media briefing, Dr Noraini highlighted that B15 was chosen as the optimal blend rate, developed in consultation with industry stakeholders, who confirmed it could be executed without significant facility upgrades.
The B15 initiative is anticipated to increase local palm oil demand and reduce Malaysia's reliance on imported fossil-based diesel. Economy Minister Akmal Nasrullah Mohd Nasir previously announced the government's plan to elevate the biodiesel blend rate from B10 to B15, beginning with B12, to secure diesel supply amid the crisis in West Asia and to reduce dependence on external markets. This move aligns with efforts to restructure the economy through a transition to renewable energy.
Dr Noraini also mentioned the expansion of B20 biodiesel usage in regions including Sarawak, Labuan, Langkawi, and Bintulu, where the government has allocated RM42 million for initial facility upgrades. An additional RM56 million is being sought for further upgrades, particularly for the Klang Valley Distribution Terminal area.
The National Biodiesel Programme, initiated in 2011 with B5 biodiesel for transportation, has gradually expanded with B7, followed by B10 and B20 between 2019 and 2020. The B10 biodiesel consists of 10 percent palm oil-based methyl ester (PME) and 90 percent petroleum diesel, while B20 contains 20 percent PME. The industrial sector currently uses B7, a mix of seven percent PME and 93 percent petroleum diesel.
The increased use of biodiesel is projected to boost domestic palm oil consumption, with the B15 implementation requiring an estimated 0.801 million metric tonnes annually compared to 0.534 million metric tonnes for B10. The B20 rollout will see palm oil usage increase to approximately 1.068 million metric tonnes annually, stabilizing domestic demand and supporting smallholders and industry players.
The government aims to implement the B30 mandate for the land transport sector by 2030, aligning with the National Agricommodity Policy, the National Energy Policy, and Malaysia's energy transition and low-carbon development goals.