PUTRAJAYA: Malaysia targets to raise its biofuel mandate in the transport sector to B20 by 2020, from B10 currently, and for industrial sector to B10, from B7, according to Primary Industries minister Teresa Kok.
The higher mandates are expected to use 1.3 million tonnes of crude palm oil each year, Kok said today
Current mandate of B10 in transport sector from Feb 1, and B7 in industrial sector from July are estimated to use 761,000 tonnes of palm oil annually.
Each RM100 a tonne increase in CPO price would generate an additional RM2bil revenue for Malaysia, she said.
Malaysia is looking into a biodiesel stabilisation fund for biofuel prices, as well as to make biofuel more attractive for consumption, she added.
The ministry has proposed it to the Cabinet and would discuss with other ministries including the trade ministry to set up the mechanism.
Malaysia, Indonesia and Colombia are to meet in Jakarta end-February to discuss palm oil issues especially EU’s Renewable Energy Directive, which would restrict palm-biofuel, she added.