Malaysia delays B10 biodiesel programme to the fourth quarter of 2016

25 Aug 2016

The government of Malaysia has decided to delay the implementation of its B10 biodiesel mandate to the fourth quarter of 2016, as it is currently discussing with oil companies to implement the programme smoothly.

The B10 programme, which aims to raise the mandatory share of biodiesel from palm oil from the current 7% of consumption in the transport sector to 10%, was initially expected in June 2016 and delayed by one month in July 2016, to complete full implementation of the new standard by August 2016.
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 0.75 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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