The government of Malaysia is negotiating with oil companies to start the B10 biodiesel mandate in July 2016 (one month later than initially expected) and to complete full implementation of the new standard by August 2016.
Malaysia aims to raise the mandatory share of biodiesel from palm oil from the current 7% of consumption in the transport sector to 10% (B10 programme for transport); the mandate for the industrial sector beginning in June would be 7% (B7 programme for industry). The new standard is expected to raise the consumption of palm oil from 0.5 Mt/year to 0.7 Mt/year.
State-owned oil company Petronas along with Shell, Chevron, Petronas and BHP are in charge of blending diesel with palm methyl ester (PME); the construction of blending facilities was funded through the Malaysian Palm Oil Board (MPOB) by the government. The country now has 18 biodiesel plants with a total capacity of 2.3 Mt/year and the current facilities in oil depots are able to handle blending up to 10%.
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