Malaysia aims to start selling B20-biodiesel by next year

KUALA LUMPUR: Malaysia is firm in pushing for the widespread use of B20 biodiesel, which is a mix of 20% palm oil and 80% diesel, by next year.

This was underscored with the exchange of a memorandum between the Malaysian Palm Oil Board (MPOB), an agency under the Primary Industries Ministry and five petroleum companies – Petronas, Shell, Petron, Chevron Malaysia and Boustead Petroleum – here yesterday

The document details the arrangements for detailed engineering studies on nearly three dozen fuel blending plants throughout the country to determine the scope of upgrading needed before these plants can produce biodiesel of up to 30% palm oil, also known as B30.

Malaysia currently uses B10, and the plan is to introduce B20 in stages beginning next January.

“The government is allocating RM35mil to fund this engineering study so that we will know the extent of upgrading required for the relevant plants,” said Primary Industries Minister Teresa Kok.

She said the question of who would fund the actual engineering and construction work was still being worked out, as a lot of it hinged on the findings of the proposed study.

“The B20 implementation is targeted to be completed by June 2021,” she said.

Malaysia began its biodiesel drive for the transportation sector in February, but this did not require any plant upgrading as existing facilities could cater to the 10% mix of palm oil into fuel.

Kok maintained that MPOB’s limited trials on B20 with its own vehicles and selected municipalities in Selangor, as well as FGV Transport Services, had not yielded any adverse findings.