The government will study B50 biodiesel feasibility amid significant costs for upgrading blending depots, says KPK.
KUALA LUMPUR: The government will study the feasibility of implementing B50 biodiesel usage, following the need for a comprehensive upgrade of existing blending depots, which is expected to involve significant costs, according to the Ministry of Plantation and Commodities (KPK).
KPK said that in assessing the country’s ability to support the expansion of biodiesel usage, the 2025 palm oil supply balance data was used as a reference.
The ministry stated that the data show Malaysia has a strong supply base, with total palm oil supply estimated to reach 22.76 million tonnes, comprising 1.71 million tonnes of preliminary stock, 20.28 million tonnes of production, and 0.77 million tonnes of imports.
“Of the total supply, 15.27 million tonnes are allocated to meet global export demand, while 4.43 million tonnes are used to meet domestic needs across various economic sectors, including the biodiesel sector,” it said in a written reply published on the Parliament website on Monday.
The ministry added that based on the current supply position, expanding biodiesel implementation up to B30 is not expected to affect the country’s palm oil export supply. This is because the amount of palm oil required to support B30 implementation is estimated at only 1.60 million tonnes per year, equivalent to approximately 7.0% of the country’s total palm oil supply.
It said this percentage is relatively small compared to the total available supply, demonstrating that the country still has sufficient capacity to simultaneously meet both export market demand and domestic consumption. “Therefore, the expansion of biodiesel usage can be carried out without affecting the country’s ability to fulfil palm oil export demand,” it added.
At present, the government’s long-term plan is to increase biodiesel usage up to B30, as outlined in the National Agricommodity Policy and supported by other policies such as the National Transport Policy and the National Energy Transition Roadmap. Under these plans, the National Biodiesel Programme will be expanded in phases across Malaysia to achieve B30 for the land transportation sector by 2030.
