Wednesday, September 18

Petroleum companies have two months to change to B10

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The decision to implement both B10 and B7 biodiesel programmes was prompted by the positive impacts and benefits to the country’s economy, palm oil industry, as well as the environment. — Reuters photo

KUALA LUMPUR: Petroleum companies have two months to switch from the current B7 (a blend of seven per cent palm methyl ester and 70 per cent petroleum diesel) to B10 biodiesel before its mandatory implementation on Feb 1, 2019.

Primary Industries Minister Teresa Kok said the B10 biodiesel (a blend of 10 per cent palm methyl ester and 90 per cent petroleum diesel) programme for the transportation sector would be implemented in phases beginning next month (Dec 1).

“The current low price of palm oil (environment) is the right time to implement the expanded biodiesel programme which was deferred in 2016,” she told a press conference here today to announce the B10 biodiesel programme for the transportation sector and B7 for the industrial sector.

Meanwhile, Kok said the B7 programme for the industrial sector would be implemented starting July 1, 2019.

“The increased domestic consumption of crude palm oil (CPO) will help reduce the current high stock and increase CPO prices, driven by higher demand and subsequently benefit smallholders through increased price of fresh fruit bunches,” she said.

She added that the decision to implement both B10 and B7 biodiesel programmes was prompted by the positive impacts and benefits to the country’s economy, palm oil industry, as well as the environment.

“This measure will promote domestic palm oil uptake as it is expected to use 761,000 tonnes of palm oil annually and contribute towards greenhouse gas (GHG) emission savings of 2.2 million tonnes of carbon dioxide (CO2) yearly.

“The current B7 biodiesel programme for the transportation sector was introduced in November 2014, utilising annually 350,000 tonnes of palm biodiesel, contributing to a reduction of GHG emissions of 1.05 million tonne of CO2.

“This biodiesel programme is in line with the Pakatan Harapan government’s goal to reduce 40 per cent of the country’s carbon emissions by 2020,” she said.

The Ministry of Primary Industries engages with stakeholders as part of the implementation programme, she said, adding that they included government agencies, vehicle manufacturers, petroleum companies, the Federation of Malaysian Manufacturers, Malaysian Biofuel Association, and Selangor and Federal Territory Engineering and Motor Parts Traders’ Association. — Bernama