The Malaysian Biodiesel Association (MBA) foresees a potential increase in the nation’s biodiesel production, projecting it to reach 1.8 million metric tons in 2024. This positive outlook hinges on the government’s extension of the 20% biodiesel mandatory program to cover more regions in Malaysia. The MBA highlighted this expectation on Tuesday, emphasizing the possibility of a significant uptick in biodiesel output if the mandatory blending program, particularly the B20 initiative, is expanded to additional areas nationwide.
As part of Malaysia’s efforts to promote sustainable fuels, the country has already introduced the B20 program, requiring a 20% blend of palm-based biodiesel in diesel for transportation. Currently, the program is being rolled out gradually, with most regions adopting a 10% blending level known as the B10 program. MBA President U.R. Unnithan expressed confidence in the potential ramp-up of blending facilities to meet the B20 standard. However, he acknowledged that achieving nationwide implementation would require considerable time and resources.
The government is contemplating extending its B10 biodiesel program, which mandates a 10% palm oil blend, to include the industrial sector. Additionally, there is a targeted plan to increase the use of biodiesel with 30% palm oil content by 2025, aligning with Malaysia’s commitment to promoting sustainable and eco-friendly fuels.
Despite the optimistic projections, U.R. Unnithan cautioned about potential challenges that could affect domestic biodiesel demand. Government plans to review price controls and fuel subsidies could pose risks to the biodiesel sector, prompting a careful consideration of the balance between economic factors and environmental sustainability.
Regarding biodiesel consumption, Malaysia saw significant export figures of nearly 300,000 tons in the previous year, with around 1.1 million tons consumed domestically. This underscores the importance of both export markets and domestic consumption in shaping Malaysia’s biodiesel industry trajectory.
As Malaysia navigates biofuel policies and market dynamics, stakeholders, including the government, industry players, and environmental advocates, will closely monitor discussions on potential biodiesel blending program expansions. The outcomes of these deliberations not only affect the biodiesel sector but also contribute to global efforts towards cleaner and more sustainable energy sources.
