Malaysia has launched a new pilot project to accelerate the use of biodiesel, as part of efforts to shift towards cleaner and more sustainable fuel sources, plantation and commodities minister Johari Abdul Ghani said on 19 July, according to The Star.
Speaking at the launch of the B30 biodiesel pilot at SD Guthrie’s Golden Hope Academy on Carey Island, Johari acknowledged that Malaysia’s national biodiesel programme, which began in 2011, has faced difficulties progressing due to financial and infrastructure constraints.
“In 2019, Malaysia authorised B7 biodiesel for use in the industrial sector and B10 for logistics. However, the country has yet to move forward with B20, as this would require around M$580m in capital investment,” he said.
“We are still evaluating how to implement this, who will cover the subsidies, and what impact B20 might have on diesel prices. These aspects require thorough assessment,” the minister added:
Under the new pilot, publicly listed SD Guthrie will fully transition to B30 biodiesel for all diesel-powered equipment and vehicles at its Carey Island operations.
B30 is a fuel blend consisting of 30% palm-based biodiesel and 70% petroleum diesel.
According to the ministry, switching to B30 can reduce greenhouse gas emissions by up to 23% per litre compared with regular diesel.
Johari noted that a broader adoption of biodiesel across Malaysia could eventually affect commodity prices. However, he declined to comment on the potential implications for the government’s fuel subsidy plans, saying it was too early to provide details.
Highlighting the environmental benefits of palm-based biodiesel, Johari said: “It significantly reduces greenhouse gas emissions and contains no sulphur, making it a cleaner alternative to conventional diesel.”