AreaMalaysia

Commodity GroupBiofuels

CommodityBiodiesel

Date01/07/2013

Policy CategoryRenewable energy

Policy InstrumentRenewable energy policy

DescriptionDecided to extend mandatory commercialization of B5 biodiesel set to be extended to the entire country by July 2014.

NotesMALAYSIA – biofuel policy: Launched in three central states of Peninsular Malaysia in 2011, mandatory commercialization of B5 (regular diesel blended with 5% palmoil methyl ester) is set to be extended to the entire country by July 2014, according to official sources. Once the programme is implemented nationwide, biodiesel producers are expected to absorb 500 000 tons of palm oil per year, compared to 300 000 tons at present. Government officials expect that increased biodiesel demand will help absorb excess palm oil production and prevent the build-up of stocks, thus lending support to prices. Moreover, the government is already planning to move beyond 5 percent blends: the country’s Palm Oil Board is working on an action plan, that includes research on the suitability of B10 blends and related equipment warranty issues. Other measures said to be ready for implementation include the use of B10 by public agencies and the armed forces, B10 trials with the country’s Fisheries Development Board, and incentives schemes for voluntary B10 use.