Malaysia postpones biodiesel mandate roll out until next year
Malaysia will delay the national rollout of its B20 palm oil biodiesel mandate to next year to prioritise an economy recovery that has suffered in light of the COVID-19 pandemic.
The mandate to manufacture biofuel with a 20% palm oil component - known as B20 - for the transport sector was first rolled out in January last year, and was set to be fully implemented across the country by mid-Jun, state news agency Bernama reported.
Plantation industries and commodities ministry secretary general Ravi Muthayah said: "Nationwide we are giving priority for the government's post COVID-19 economic recovery plan, which is more crucial. We have limited resources and must identify priorities.”
Indonesia has also pushed back plans to raise the bio-content of palm oil-based biodiesel to 40% and instead the country has raised export levies to finance its B30 programme after the pandemic resulted in the collapse in crude oil prices.
A rally in Malaysia's benchmark crude palm oil prices to its highest in nearly a decade has also widened its premium over crude oil, making palm a less sustainable option for biodiesel feedstock.
The mandate to manufacture biofuel with a 20% palm oil component - known as B20 - for the transport sector was first rolled out in January last year, and was set to be fully implemented across the country by mid-Jun, state news agency Bernama reported.
Plantation industries and commodities ministry secretary general Ravi Muthayah said: "Nationwide we are giving priority for the government's post COVID-19 economic recovery plan, which is more crucial. We have limited resources and must identify priorities.”
Indonesia has also pushed back plans to raise the bio-content of palm oil-based biodiesel to 40% and instead the country has raised export levies to finance its B30 programme after the pandemic resulted in the collapse in crude oil prices.
A rally in Malaysia's benchmark crude palm oil prices to its highest in nearly a decade has also widened its premium over crude oil, making palm a less sustainable option for biodiesel feedstock.
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