Kuala lumpur: The implementation of the B15 biodiesel blend rate will be carried out in stages to avoid disruption to the existing operations of the industry, said Minister of Economy Akmal Nasrullah Mohd Nasir. He emphasized the importance of a progressive approach, particularly at blending centres, to ensure the operations are organized without disturbing the current supply chain.
According to BERNAMA News Agency, the Minister elaborated that if the arrangement of operations at blending centres does not require infrastructure upgrades, the blending rate can be increased from B10 to B15. This increase must be executed progressively and in stages to prevent any disruption to existing operations. He mentioned this after visiting the 'Inisiatif Pendapatan Rakyat-Usahawan Tani' (IPR-INTAN) project.
B15 refers to a blend of 15 percent palm oil-based biodiesel with 85 percent petroleum diesel, compared with the current B10, which consists of 10 percent biodiesel and 90 percent regular diesel. To achieve a higher blending level like B20, improvements and investments in infrastructure are necessary. The Minister stated that reaching a higher level of B20 and B30 requires upgrading infrastructure, which is essential for medium-term targets.
The government had previously agreed to increase the biodiesel blend rate from B10 to B15, starting with B12, without incurring additional costs, following developments in the West Asia crisis. Akmal Nasrullah had indicated that this measure aims to ensure a longer supply period for the country's diesel and to reduce dependence on fossil fuel imports and global market fluctuations. He also stressed the need to accelerate the transition to renewable energy in restructuring the economy.
Additionally, the Minister mentioned plans to visit a facility in Port Klang with the Minister of Plantation and Commodities, Datuk Seri Dr Noraini Ahmad, to assess the readiness of the facility for biodiesel production. The premises in question are KL-Kepong Oleomas Sdn Bhd (KLKOM), a Malaysian-based oleochemical manufacturing company. KLKOM is part of the KLK OLEO division under Kuala Lumpur Kepong Bhd, one of the largest plantation companies globally.