Kuala Lumpur: Malaysia’s government will examine the feasibility of introducing B50 biodiesel as it evaluates the investment required to upgrade existing fuel blending infrastructure, the Ministry of Plantation and Commodities (KPK) said.
According to the ministry, any decision to expand biodiesel usage beyond current levels will depend on infrastructure readiness and the financial implications of modernising blending depots across the country, The Edge Malaysia reported.
As part of the assessment, the government is using Malaysia’s 2025 palm oil supply balance data to determine whether domestic supply can support higher biodiesel blending levels.
KPK said total palm oil supply for 2025 is estimated at 22.76 million tonnes, consisting of 1.71 million tonnes of opening stocks, 20.28 million tonnes of production and 0.77 million tonnes of imports.
Of this total, around 15.27 million tonnes are expected to meet export demand, while 4.43 million tonnes will be allocated to domestic consumption across multiple sectors, including biodiesel production.
The ministry stated that current supply levels indicate that expanding biodiesel blending up to B30 would not disrupt Malaysia’s palm oil export commitments.
It estimated that implementing B30 nationwide would require approximately 1.60 million tonnes of palm oil annually, representing about 7 percent of the country’s total supply.
According to KPK, this level of demand remains manageable and demonstrates Malaysia’s capacity to meet both export requirements and domestic biodiesel consumption at the same time.
The ministry added that the country’s long-term biodiesel strategy continues to focus on expanding usage to B30 in line with the National Agricommodity Policy, supported by the National Transport Policy and the National Energy Transition Roadmap.
Under the phased expansion plan, Malaysia’s National Biodiesel Programme aims to achieve B30 adoption across the land transportation sector by 2030.
