Malaysia’s Economy Minister Akmal Nasir said the government has decided to increase the biodiesel blending ratio. (Photo: Akmal Nasir's Facebook)
To address ongoing diesel supply constraints, Malaysia is stepping up its bioenergy push, with plans to increase the national biodiesel blending mandate to 15%. The government is also evaluating the feasibility of deploying B100—100% palm-based biodiesel—following pilot projects led by the Federal Land Development Authority (FELDA).
Preliminary findings suggest that B100 production costs are significantly lower than conventional diesel, highlighting strong development potential and offering a pathway to reduce reliance on imported fuels.
Unlock the full article to explore three key takeaways:
- Malaysia plans to raise biodiesel blend from B10 to B15, with a near-term target of B12 achievable through existing infrastructure.
- B100 palm biodiesel pilots show a production cost of MYR 4.5 per liter (USD 1.14)—around 36% cheaper than conventional diesel.
- Raising the blend from B10 to B20 could save Malaysia MYR 1.64 billion (USD 415 million) annually in fuel subsidies.
