Malaysia has rolled out a B20 programme, where diesel for transportation must be blended with 20% palm-based biodiesel, in phases with most areas in the nation currently implementing 10% blending or a B10 programme for the transportation sector.
"We can get (several blending) facilities up and running faster, then we obviously can go into B20 then," MBA president U.R. Unnithan told Reuters in an interview, adding that nationwide implementation would take more time and cost.
Unnithan said the group has submitted the recommendation to the government and hope expansion of the programme could be done in the second half of this year, however further discussions with other stakeholders is needed before a decision is made.
Malaysia launched a nationwide mandatory 20% palm-based biodiesel blending for the transportation sector in 2020, however the programme has only been implemented in some areas as the COVID-19 pandemic and multiple changes of government in recent years hampered progress.
The government has considered expanding its B10 biodiesel programme, which requires the mandatory use of 10% palm oil, to the industrial sector and has a mandate to use biodiesel with 30% palm oil by 2025.
The Southeast Asian country exported nearly 300,000 tons of biodiesel last year, while around 1.1 million tons was consumed domestically.
Unnithan, however, cautioned that the government's intention to review price controls and fuel subsidies could hurt domestic demand for biodiesel.
