PUTRAJAYA, April 17 — The implementation of the B15 biodiesel blend rate will be carried out in stages to avoid disruption to the existing operations of the industry, said Minister of Economy Akmal Nasrullah Mohd Nasir.
He said the progressive approach is important as operational aspects, particularly at blending centres, need to be organised meticulously without disrupting the current supply chain.
“If it involves the arrangement of operations at blending centres without any infrastructure upgrades, the blending rate can be increased from B10 to B15. However, this must be done progressively and in stages to ensure that existing operations are not disrupted,” he said.
He said this to reporters after visiting the ‘Inisiatif Pendapatan Rakyat–Usahawan Tani’ (IPR-INTAN) project here today.
Basically, B15 refers to a blend of 15 per cent palm oil-based biodiesel with 85 per cent petroleum diesel, compared with B10 currently. B10 refers to 10 per cent biodiesel and 90 per cent regular diesel.
He said that to achieve a higher blending level like B20, improvements and investments in infrastructure are still needed.
“If we want to reach a higher level of B20 and B30, investment in infrastructure needs to be made, specifically upgrading the infrastructure. So for the medium-term targets, there is indeed a need for us to upgrade the infrastructure,” he said.
The government previously agreed to increase the biodiesel blend rate from B10 to B15, starting with B12, without any additional costs, following developments in the West Asia crisis.
Akmal Nasrullah was previously reported to have said that the measure aims to ensure the availability of the country’s diesel supply for a longer period, as well as to reduce dependence on fossil fuel imports and global market fluctuations.
He also emphasised that the restructuring of the economy through the transition to renewable energy (RE) needs to be accelerated.
Meanwhile, he said he and the Minister of Plantation and Commodities, Datuk Seri Dr Noraini Ahmad, will also visit a facility in Port Klang tomorrow to assess and review the readiness of the facility for biodiesel production.
It is understood that the premises in question are KL-Kepong Oleomas Sdn Bhd (KLKOM), a Malaysian-based oleochemical manufacturing company.
KLKOM is part of the KLK OLEO division under the Kuala Lumpur Kepong Bhd, one of the largest plantation companies in the world.
