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March 26, 2010

Malaysia will use biodiesel by next year
26 March 2010

In Malaysia the national government will introduce a B5 biodiesel mandate by June 2011.

Malaysia is the world’s second-largest manufacturer of palm oil, the prime feedstock for the B5 mandate. However palm oil is not received well by environmentalists who claimed the plantations destroy the environment and wildlife habitats.

Malaysia initially approved the B5 law back in 2006 but it was delayed due to changes in the cost.

The Plantation Industries and Commodities Ministry said in a statement that the policy ‘will benefit the country as biofuel is environmentally friendly and it will reduce our dependence on petrol diesel. It will also strengthen the palm oil prices and enable the partners, especially smallholders, to benefit from the stronger palm oil price.’

The government says that turning to renewable fuels will help lower the prices of fuel in Malaysia, where petrol is subsidised. It added that the mandate will encourage motorists to fill up with biodiesel after high prices was putting customers off.

Biofuels International

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