Full implementation of the B10 biodiesel mandate for the transport sector in Malaysia kicked off on 1 February.
Malaysian Prime Minister Tun Dr Mahathir Mohamad launched the B10 programme on 1 December to raise the blending of palm oil in diesel fuel from 7% to 10%. A B7 blending mandate for the industrial sector would begin on 1 July this year as well.
Implementation of the B10 mandate should increase demand for biodiesel by 100,000 to 250,000 tonnes/year, price reporting agency S&P Global Platts reported.
Primary Industries Minister Teresa Kok said the B7 programme would also boost local demand for palm oil to about 380,000 tonnes/year, the Daily Express said in January.
The Prime Minister said in December that using B10 biodiesel would reduce emissions by 1.6M tonnes/year and increase demand for palm oil, one of Malaysia’s main exports. “The air quality, especially in urban areas, will also increase through the use of biodiesel with the reduced emission of dust and black smoke into the air. The implementation of the B10 programme is apt at this time in view of the lower price of palm oil biodiesel compared to petroleum diesel.”
The Prime Minister added that he would like the country to adopt a B20 blending mandate by 2020, similar to that of Indonesia’s.