The government of Malaysia plans to start a biodiesel program with a 30% bio-content (B30) in the transport sector before 2025. Malaysia’s newly launched National Automotive Policy 2020 comprises measures, including the development of testing and standards, to encourage the adoption of B30. The country plans a trial of B30 in June 2020.
Malaysia Biomass Initiatives (MBI) was launched in 2011 to develop and promote palm oil. In 2011 Malaysia launched its B5 biodiesel programme, blending 5% palm oil-based biodiesel with 95% diesel. The share of biodiesel was raised to 7% in 2014 under the B7 Programme (applicable to the industrial sector as of February 2019) and then to 10% under the B10 mandate in February 2019. The B20 biodiesel program, which was launched in January 2020 in Langkawi and Labuan, will be extended to Sarawak in April 2020 and Sabah in August 2020 and will be progressively implemented throughout Malaysia by June 2021.
Malaysia is the world's second-largest exporter and producer of palm oil, behind Indonesia, with 17 operating biodiesel plants totalling 2.8 Mt/year of capacity and facilities in oil depots able to handle blending up to 10%.
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