FELDA: B100 Biodiesel Is A Viable Alternative During Oil Crisis
Pilot tests of biodiesel fuel in tankers were done in 2025, although it was part of efforts in lowering carbon emissions and not as a solution to a global oil crisis.
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Federal Land Development Authority (FELDA) chairman Datuk Seri Ahmad Shabery Cheek recently said that B100, a pure palm oil-based biodiesel fuel can potentially be a more competitive and sustainable energy source as uncertainties rise from the crisis in the Middle East.
He said B100 is still at the policy stage and will be first implemented within the FELDA ecosystem, according to a Bernama report.
“At this stage, a government policy needs to be in place, as we may not have sufficient crude palm oil (CPO) supply to roll out B100 immediately,” Ahmad Shabery said at a press conference yesterday.
He mentioned B100’s factory price is estimated at about RM4.50 per litre, depending on CPO prices.
From 2 to 8 April, the diesel price in West Malaysia increased to RM6.02 per litre (up from RM5.52), while prices in Sabah, Sarawak, and Labuan remain at RM2.15 per litre.
At an estimated price of below RM5 per litre, Ahmad Shabery said B100 could reduce reliance on diesel as well as support domestic fuel price stabilisation and strengthen national energy security.
Meanwhile, he also said FELDA and FGV Holdings Berhad would need to expand the B100 biodiesel processing plant development in order to increase production capacity.
“We are having discussions to determine the form of partnership, whether to involve full private sector participation, government support or other parties, to meet the requirement of raising B100 capacity,” said Ahmad Shabery.
What kind of vehicle uses B100 biodiesel?
B100 biodiesel works by powering conventional diesel engines through compression ignition, utilizing renewable sources like vegetable oils or animal fats.
Produced via transesterification, it is chemically similar to fossil diesel but requires specialized handling due to its cold-temperature sensitivity and higher solvent properties (it turns to gel at low temperatures and absorbs water more).
If you’re wondering if B100 can be used in your privately-owned vehicle, it’s possible, but your car would require a modern diesel engine and specific vehicle preparations. Simply said, it won’t be suitable for all diesel cars without modifications.
As mentioned earlier, B100 biodiesel will only be used in the FELDA ecosystem and is not available commercially.
A pilot test using B100 was done with road tankers in 2025
Shell Malaysia launched a pilot test of two B100 biodiesel-fuelled Scania road tankers operated by Konsortium Port Dickson (KPD) back in 2025.
According to automotive portal paultan.org, the test was supported by the Malaysian Palm Oil Board (MPOB) as well as the ministry of plantation industries and commodities (MPIC).
Back then, however, the test was part of efforts to lower carbon emissions instead of a solution to a global oil shortage.
FGV Holdings also tested out B100 biodiesel on passenger vehicles (specifically a Mazda CX-8 SUV) that same year, to evaluate performance over a 15-month and 15,000 kilometer period.
The diesel fuel commonly found at gas stations around Malaysia are usually B10 or B20 biodiesel, which is the standard fuel for diesel engines today.
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