Kuala Lumpur: Malaysia has begun the gradual implementation of its B15 biodiesel programme across Peninsular Malaysia, marking a new step in the country’s energy transition strategy while creating additional demand for domestically produced palm oil.
Under the new programme, biodiesel will consist of 15 per cent palm oil-based biodiesel, known as Palm Methyl Ester (PME), blended with 85 per cent petroleum diesel. The move replaces the existing B10 blend, which contains 10 per cent PME, The Star reported.
The government views the initiative as part of a broader effort to strengthen energy security, reduce dependence on imported diesel and provide greater support to the palm oil industry amid uncertainty in global energy markets.
The transition to B15 is expected to take place in stages, with authorities emphasising that the higher biodiesel blend can be used in most diesel vehicles without requiring engine modifications.
Deputy Prime Minister Ahmad Zahid Hamidi previously said the government intends to increase biodiesel production gradually before considering further increases in blend rates based on market conditions and industry readiness.
He also highlighted the potential of palm oil industry by-products, including sludge generated during crude palm oil processing, for use in biodiesel and aviation fuel production. According to him, this could help create new value-added opportunities within Malaysia’s commodity sector.
The government has assured industry stakeholders that the rollout will be carefully managed, taking into account palm oil availability, industrial preparedness and supporting infrastructure.
Plantation and Commodities Minister Noraini Ahmad said the B15 programme is expected to consume around 0.8 million tonnes of palm oil annually. She noted that this remains well below Malaysia’s estimated annual domestic palm oil surplus of approximately four million tonnes.
Authorities have also sought to address concerns regarding the suitability of biodiesel blends for vehicle engines.
Economy Minister Akmal Nasrullah Mohd Nasir said Malaysia’s vehicle standards have already accommodated biodiesel blends of up to B20 since 2020. He added that B20 biodiesel has been used in areas such as Langkawi, Labuan and Sarawak without any major issues related to engine performance or damage.The launch of B15 is expected to support both Malaysia’s renewable energy goals and its palm oil sector by increasing domestic consumption of palm-based biodiesel while reducing reliance on conventional fossil fuels.
