Malaysian government rules out increasing palm oil’s biodiesel blend to 20%

In Malaysia, Reuters reported that Malaysia has no plans to raise palm oil’s biodiesel blend to 20% from the current 10%, as the required infrastructure development would need funding that both the industry and the government are unwilling to provide.

There are challenges to implement the biodiesel blend to 20% as it will require an investment in infrastructure estimated at about $146.20 million, according to the country’s Plantation and Commodities Minister Johari Abdul Ghani.

Malaysia currently imposes a 10% biodiesel mandate, although a 20% biodiesel mandate is implemented in Labuan and Langkawi as well as the state of Sarawak except Bintulu, he said.

“Our engagement with industry stakeholders show that they want the government to finance this but we are not ready to fund it,” he added.

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