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PUBLISHED: Oct 28, 2014 10:41am

Malaysia raising biodiesel mandate

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KUALA LUMPUR, Oct 28:

Malaysia will lift its mandate for biodiesel to use 7% palm oil in stages from November onwards, up from 5% now, as the world’s No 2 palm grower looks to lower stocks and prop up prices that have lost more than 20% this year.

The higher mandate for the subsidised sector will also help cut back on reliance on diesel, a senior government official said.

“Implementation of B7 programme will consume 575,000 tonnes of biodiesel,” Malaysian plantation industries and commodities minister, Datuk Amar Douglas Uggah Embas, said today.

“This will contribute towards a savings of 667.6 million litres of diesel a year.”

The “B7” biodiesel blend will be imposed in Peninsular Malaysia from November onwards and from December for Sarawak, Sabah and Labuan.

Bernama reported that he said the Cabinet had on Oct 17 approved implementation of the B7 programme.

He also said the move to implement the B7 programme will position Malaysia to be on par with other developed nations in the use of renewable energy sources.

“Countries in the EU have been implementing the B7 since 2009, and Thailand from January this year. Indonesia has been using the B7.5 from February 2012, and Colombia, the B8 and B10 using palm-based biodiesel.”

He said in preparation for the implementation of the B7 programme,  the government has conducted a series of engagements with relevant stakeholders, including the Japan Automobile Manufacturers Association, the Malaysian Automotive Association, as well as petroleum companies.

“Based on the consultations, there are no significant issues involved in implementation of the B7 programme.”

Uggah said implementation of the B7 programme demonstrates the government’s efforts toward the diversified use of crude palm oil, thus reducing dependence on petroleum diesel, as well as greenhouse gas emissions via environmentally friendly energy sources.

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