The government has decided that B15 biodiesel will be produced through 19 plants nationwide starting June 1, in a move aimed at helping to reduce diesel prices and strengthen the country’s fuel stability.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the initiative will be implemented in stages, beginning with B15 biodiesel before gradually increasing to B20 and potentially B50 within the next two to three years.
He said the phased approach is necessary to ensure that crude palm oil (CPO) prices do not place excessive pressure on biodiesel production costs.
“We are doing this in phases to ensure that CPO prices will not burden biodiesel production,” he said on Monday (May 4).
Ahmad Zahid, who is also Rural and Regional Development Minister, said large-scale biodiesel production is expected to reduce operational costs and ultimately help lower fuel prices in the long term.
He added that biodiesel has already undergone capability testing for vehicle use and shows strong potential as a sustainable alternative fuel.
“There are currently 19 biodiesel production plants ranging from B15 to B50. We will also utilise sludge or by-products from CPO production, where about 35 per cent will be used to produce biofuel as well as Jet A1 fuel,” he said.
The proposal has already been presented to the National Economic Action Council (MTEN) on April 19, involving collaboration between government agencies and private plantation companies.
Ahmad Zahid said MTEN has given in-principle approval, and coordination with relevant stakeholders will continue to ensure production efficiency and cost control.
Malaysia currently operates 19 biodiesel plants with a combined monthly capacity of about 1.5 million litres, positioning the country to further expand its role in alternative energy amid ongoing global energy challenges.
