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News Wire / economy

Malaysia Prepared To Increase Biodiesel Usage

CNA938 Singapore Kuala Lumpur 11d11d Impact 5

Malaysia is increasing its use of biodiesel to mitigate rising energy costs and decrease dependence on imports. Industry players are pushing for a wider use of biodiesels to address the situation. Malaysia is planning to upgrade infrastructure to support a transition from B10 to B20 or B30 biodiesel. The country currently operates 34 blending depots. Upgrading the infrastructure to accommodate higher biodiesel blends is expected to take one to two years. The transition affects approximately one million diesel vehicle owners in Malaysia. Malaysia maintains a total biodiesel production capacity of 2.4 million tonnes per annum. Last year, the country produced approximately 1.3 million tonnes, with 1 million tonnes utilized for the National Biodiesel Blending Programme. Local demand is expected to reach 1.4 million tonnes following an additional demand of 400,000 tonnes.

Malaysia is increasing its use of biodiesel to mitigate rising energy costs and decrease dependence on imports. Industry players are pushing for a wider use of biodiesels to address the situation. Malaysia is planning to upgrade infrastructure to support a transition from B10 to B20 or B30 biodiesel. The country currently operates 34 blending depots. Upgrading the infrastructure to accommodate higher biodiesel blends is expected to take one to two years. The transition affects approximately one million diesel vehicle owners in Malaysia. Malaysia maintains a total biodiesel production capacity of 2.4 million tonnes per annum. Last year, the country produced approximately 1.3 million tonnes, with 1 million tonnes utilized for the National Biodiesel Blending Programme. Local demand is expected to reach 1.4 million tonnes following an additional demand of 400,000 tonnes. Industry experts noted that current capacity is sufficient to meet these requirements. Malaysia is prepared to transition to B-15 biodiesel standards as soon as possible. Higher usage levels such as B-20 and B-30 are discussed as potential methods to boost energy security and reduce bills.

Topics

biodiesel palm oil energy security

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Sources · 7 independent

CNA938 Singapore

“Malaysia is turning to biodiesel to ease rising energy costs and reduce reliance on imports. Backed by its vast palm oil industry, country is pushing for higher biofuel blends.”

CNA938 Singapore

“Malaysia forking out over US$1.8 billion a month to subsidize ballooning energy costs, its government is hard-pressed to find alternative sources. Palm oil has emerged as a potential solution.”

CNA938 Singapore

“Malaysia forking out over US$1.8 billion a month to subsidize ballooning energy costs, its government is hard-pressed to find alternative sources.”

CNA938 Singapore

“diesel now cheaper than petroleum diesel after the straight up home lose Malaysian Biodiesel Association. Here's Melissa Goh.”

CNA938 Singapore

“diesel now cheaper than petroleum diesel after the straight up home lose”

CNA938 Singapore

“Diesel today is close to 6.2 ringgit litre whereas biodiesel would be about 4.5 ringgit litre. So there is already an economic incentive.”

CNA938 Singapore

“Biodiesel emits 80% fewer greenhouse gases than conventional diesel. We have 20 million tonnes of palm oil supplied. We're only using 1.3 million tonnes for biodiesel production.”

CNA938 Singapore

“With Malaysia forking out over US$1.8 billion a month to subsidise ballooning energy costs, its government is hard-pressed to find alternative sources.”

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