Malaysia mulls raising palm oil share in biodiesel
Malaysia, the world’s second-largest palm oil producer, is considering raising its palm oil blend in biodiesel, aligning with Indonesia’s 40% mandate. Currently, Malaysia enforces B10 for transport and B20 for industry. Ongoing R\&D in sustainable aviation fuel and next-gen biodiesel supports climate goals and market expansion. Geopolitical tensions and rising crude oil prices are boosting regional biofuel demand.
Malaysia, the world’s second largest palm oil producer, plans to “actively assess” prospects to increase the percentage of palm oil in biofuels, similar to Indonesia, industry sources said.
Malaysia currently mandates B10 for transportation and B20 for industrial use. Indonesia, the number 1 producer, on the other hand, has mandated a 40 per cent blend of palm oil in biodiesel.
Research and development (R&D) into palm-based aviation fuel (SAF) and next-gen biodiesel is ongoing in Malaysia, whose biofuel strategy complements climate commitments and palm oil market diversification. Geopolitical tensions and the resultant crude oil price surge typically spur interest in biofuels as an alternative energy source. This could result in higher demand for palm-based biofuels in ASEAN, India and West Asia, in both the transport and industrial energy sectors, an industry insider with access to government policies told businessline.
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Source : The Hindu Business line
