KUALA LUMPUR, June 5 — The increase in the biodiesel mandate from B10 (10 per cent palm-oil-based biodiesel) to B15 will reduce the country’s reliance on export markets, said Federal Land Development Authority (Felda) chairman Datuk Seri Ahmad Shabery Cheek.
He said the higher mandate would also encourage industry players to increase biodiesel production capacity, helping maintain palm oil price stability in the future by increasing domestic demand.
“Export markets are good as we earn foreign exchange from them, but sometimes they impose various conditions, quotas, or taxes. If our own country uses it (palm oil), it will benefit the domestic plantation industry and protect settlers’ incomes,” he said.
Ahmad Shabery also explained that Malaysia currently has 20 biodiesel plants with sufficient capacity to support up to a 30 per cent biodiesel blend, but most are operating below capacity because demand is currently limited to B10 at petrol stations and B7 in certain industrial sectors.
He said in a press conference after the memorandum of understanding (MoU) between Felda and Encorp Bhd for the Felda Staff housing project.
The Felda chairman said the implementation of the new B15 mandate, which took effect on June 1, is expected to increase the country’s biodiesel usage, allowing production plants to raise their utilisation rates.
“Malaysia can actually further increase biodiesel use in the future, given the country’s capacity to produce the fuel.
“The use of palm oil for biodiesel could potentially be raised to about five to six million tonnes a year without affecting domestic needs, thereby reducing the nation’s reliance on export markets,” he said.
He elaborated that Malaysia produces about 20 million tonnes of palm oil a year, with around three million tonnes used for food needs such as cooking oil, margarine and related products, while one million tonnes are used for biodiesel, leaving the country still dependent on export markets for about 15 to 16 million tonnes.
