Malaysia's B20 biodiesel expansion stalled by infrastructure, investment gaps

Southeast Asia's palm oil production drives biodiesel development in the region. (Photo: iStock)

Malaysia's biodiesel development has encountered significant challenges, with officials pointing to the need for infrastructure upgrades to increase the palm oil blending ratio in biodiesel.

To achieve this, an additional investment of 643 million ringgit (about 145 million USD) is required. However, both the government and businesses are not yet prepared to make these investments. The issue is also believed to be linked to fluctuations in palm oil production and prices.

Infrastructure, investment challenges for B20 expansion

Currently, the B20 biodiesel, which blends 20% palm oil with 80% regular diesel, is only used in select areas.