PUTRAJAYA: The government has decided that 19 licensed plants can produce B15 biodiesel beginning June 1 aimed at lowering diesel prices in the country, says Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
He said the move is crucial to help stabilise fuel costs and will be implemented in stages.
“It will start with B15 and gradually progress to B20. Subsequently, within the next two to three years, it may go up to B50.
“We are doing this in phases to ensure that crude palm oil (CPO) prices will not burden biodiesel production costs,” he said at the Rural and Regional Development Ministry yesterday.
He said large-scale production is expected to reduce operating costs and lower overall fuel prices.
He said biodiesel has already undergone capability testing for use in vehicles and has strong potential to stabilise and reduce diesel prices over the long term.
“There are 19 biodiesel production plants ranging from B15 to B50. We will utilise sludge or by-products from CPO production, where about 35% of the sludge will be fully used to produce biofuel and Jet A1 fuel,” he added.
He said the initiative was presented to the National Economic Action Council (MTEN) on April 19 through collaboration between government agencies and private plantation companies.
“This has already been initiated, and MTEN has in principle accepted the proposal. We will coordinate with the relevant bodies and companies to ensure production costs remain low when synergy is achieved among the 19 plants,” he said.
Malaysia currently has 19 biodiesel production plants based on rubber waste, with a combined monthly capacity of about 1.5 million litres, positioning the country to tap into biodiesel as an alternative energy source amid the global energy crisis.
