Kuala lumpur: The proposed increase in the country's biodiesel blend from B10 to B15, starting with B12, can reduce dependence on diesel and extend the lifespan of the nation's fuel supply following the crisis in West Asia, said Economy Minister Akmal Nasrullah Mohd Nasir.
According to BERNAMA News Agency, the increase from B10 to B15 may seem small, but it would have a significant impact, as biodiesel usage is expected to rise by up to 50 per cent. The minister noted that Malaysia's crude palm oil (CPO) production is estimated at around 18 million to 20 million tonnes per year, with only about 500,000 tonnes currently used for biodiesel. To achieve a B15 blend, biodiesel demand is expected to increase to about 800,000 tonnes, representing about four per cent of the country's total CPO production.
Existing biodiesel production capacity is also sufficient, with local plants capable of producing around 23 million to 24 million tonnes, but current utilisation is only about 40 per cent, indicating that the capacity has not been fully optimised. Akmal Nasrullah highlighted during the Agenda Awani programme titled 'Global Energy Crisis: Accelerating the Biodiesel Transition' aired on Astro Awani that the upgrade to B15 is expected to be implemented without the need for new infrastructure development, instead relying on operational efficiency in the blending process.
The move is also expected to benefit oil palm smallholders, while being supported by confirmed sufficient supply that does not affect palm oil usage for the food sector. The government is currently assessing the readiness of biodiesel blending and production facilities to ensure that the implementation of the higher blend rate does not disrupt the existing supply chain.
The B15 implementation is expected to be realised within a short period, as early as between one and one and a half months, as it does not require large-scale infrastructure upgrades. In 2025, Malaysia's biodiesel output totalled 975,207 metric tonnes despite having a production capacity of 2.36 million metric tonnes.