Malaysia will begin implementing its B15 biodiesel programme from June 1 as part of efforts to strengthen national energy security, reduce dependence on imported fossil fuels and support the country’s transition toward a low-carbon economy.
Under the programme, diesel fuel will contain 15% palm oil-based biodiesel. The government said the rollout was carefully planned after considering domestic palm oil supplies and the country’s existing fuel infrastructure, UkrAgroConsultant reported.
According to Plantation and Commodities Minister Noraini Ahmad, Malaysia produces around 20 million tonnes of palm oil annually, of which nearly 16 million tonnes are exported. She said the B15 programme would require only about 0.8 million tonnes of palm oil feedstock and would not affect export volumes.
The government described the B15 blend as the most practical option following discussions with industry stakeholders, noting that the programme can be introduced without major upgrades to existing infrastructure.
Malaysia has already implemented B20 biodiesel programmes in regions including Sarawak, Labuan and Langkawi. To support further expansion of B20, the government has allocated 42 million ringgit for infrastructure improvements and sought an additional 56 million ringgit to modernise fuel distribution terminals, especially in the Klang Valley region.
Officials said the wider use of biofuels forms part of Malaysia’s long-term energy transition strategy.
Malaysia first launched its national biodiesel programme in 2011 with the B5 mandate for the transport sector. The country later expanded the programme to B7, B10 and B20, and is now preparing for broader B15 implementation.
Under the B10 standard, fuel contains 10% palm methyl ester and 90% petroleum diesel, while B20 contains a 20% biofuel component.
The government estimates that the B15 programme will increase domestic palm oil consumption to around 0.8 million tonnes annually, compared to 0.53 million tonnes under B10. Full implementation of B20 in the future could raise domestic demand for palm oil to more than 1 million tonnes each year, helping support smallholder farmers and stabilise the local market.
Malaysia is also targeting the introduction of the B30 biodiesel standard for land transport by 2030. Authorities believe the expansion of the biodiesel sector will play a major role in reducing carbon emissions while strengthening the country’s strategically important palm oil industry.
