2017 biodiesel production forecast for Malaysia revised down

Biodiesel production in Malaysia for 2017 is expected to be little changed from 2016, according to Reuters. According to the Malaysian Biodiesel Association (MBA), forecasts have been revised down since the start of the year due to delays in meeting biofuel mandates.

"(Last year) saw half a million tonnes of biodiesel production. Unless we move to B10 or B7 this year, I imagine it will be more or less the same this year," said U.R. Unnithan, the MBA's president, according to Reuters.

There are calls in Malaysia to raise the minimum bio content of biodiesel in the transport sector to 10%, otherwise known as B10, and 7% in the industrial sector, or B7. At present the mandate is 7% for the transportation sector, with no mandate for the industrial sector.

"Until that (higher biodiesel mandate) is implemented, we don't see any increase (in production). Even if (biodiesel production) does go up, volumes will be at 600,000 tonnes," said Unnithan.

Delays mean the new biodiesel mandates have yet to be implemented. It’s expected the increased blends would use up more palm oil supplies in the world’s biggest producer of the commodity, in turn boosting prices by reducing stockpiles.

In March, the MBA said Malaysia would produce 900,000 tonnes of biodiesel in 2017, assuming the B10 and B7 mandates were implemented. 

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