Leading palm oil company SD Guthrie, formerly known as Sime Darby Plantation (SD Plantation), is set to transition all machinery and diesel-powered vehicles at its site in Carey Island, Selangor, Malaysia, to run on B30 biodiesel, a blend of 30% palm-based biodiesel and 70% petroleum-based diesel.
Launched in partnership with the Ministry of Plantation and Commodities (KPK), Petronas Dagangan Bhd (PDB) and the Malaysian Palm Oil Board (MPOB), the B30 biodiesel pilot project would lead to a 23% reduction in greenhouse gas (GHG) emissions/litre compared to conventional diesel, SD Guthrie said on 18 July.
The B30 biodiesel would be sourced from PDB’s Melaka terminal, the company said.
“The launch of our B30 biodiesel campaign is an important milestone in Guthrie’s journey towards net-zero emissions. By transitioning our entire fleet of operational machinery in Carey Island to B30, we are not only reducing our greenhouse gas emissions but also setting a new benchmark for sustainable practices in the plantation sector,” said SD Guthrie Group managing director Mohamad Helmy.
In 2023, Guthrie became the world’s first palm oil company to have its net-zero targets validated by the Science Based Target initiative (SBTi). By adopting a cleaner fuel source, the company said it would be able to reduce its Scope 1 emissions, which account for 31% of the group’s total emissions.
The company said it had decided to locate the pilot project in Carey as it was the central hub of its ongoing initiative to mechanise, automate and digitalise oil palm plantation operations.
Despite the higher cost of B30 compared to other biodiesel blends, Mohamad Helmy said it was hoped that the B30 pilot project would lead to the implementation of a national B30 mandate, driving greater domestic consumption of palm oil.
“Carey Island is just the beginning. Our goal is to scale this across all Guthrie operations to further reduce our emissions. Together with KPK, Petronas and MPOB, we are demonstrating how palm oil can be part of the climate solution,” he added.
SD Guthrie also started a pilot project using B20 biodiesel at its Seri Pulai estate in Johor in June.
In 2020, Malaysia’s National Biodiesel Programme officially launched B20, which was being rolled out in phases across the country.
