B20 mandate could boost biodiesel production in Malaysia

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The Malaysian Biodiesel Association (MBA) said the country could produce 1.5 million tonnes of biodiesel if the government’s B20 biodiesel mandate for the transport sector was fully implemented.
MBA president UR Unnithan said that figure could increase to 2.5 million tonnes if B30 was introduced by 2030, provided the new government was committed to enacting policies as part of the implementation.
He said: “When Malaysia announced B20, there was a lack of clarity because of the political situation. It is still uncertain. But definitely, Malaysia's volume is increasing, and I hope that B20 becomes a reality this year.
“It's a new government, and they are still setting policies in place. We (MBA) want to put forward [the] suggestion and hopefully it falls on the right ears, making the right kind of noises for the betterment of [the] Malaysian economy.”
The mandate to manufacture biofuel with a 20% palm oil component — known as B20 — for the transport sector was first rolled out in January 2020, but was delayed during the Covid-19 outbreak.
In 2021, the mandate was postponed to last year and then to this year due to political uncertainties in the country that delayed policy making.
“If you look at the updated biodiesel data, 2022 has been the best year for Malaysian biodiesel both from production and consumption point of view, because post Covid-19, the consumption level started to rise. Some states in Malaysia already implemented B20 and consume nearly 1.1 million tonnes domestically,” he added.

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