BANTING: The government is looking to expand the use of biodiesel in the country in its efforts towards a more sustainable source of fuel, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. 

He said the national biodiesel program, which has been running since 2011, has stalled in terms of adopting a higher blend of palm biodiesel, citing capital expenditure and infrastructure constraints. 

"In 2019, Malaysia made B7 mandatory for the industrial sector and B10 for the logistics sector, but we have not moved to B20 since then because it requires significant capital expenditure of RM580 million.

"So we are working on how to implement it, who should bear the subsidy, and we want to see what happens once it becomes B20 - how it will affect the diesel prices - all of that needs to be examined," he told reporters after launching the B30 Biodiesel pilot project at Guthrie’s Golden Hope Academy in Carey Island today.

As for today’s event, SD Guthrie Bhd

will fully transition to using B30 biodiesel for all its operational machinery and company vehicles that run on diesel at its plantation operations in Carey Island.

B30 biodiesel, a blend of 30 per cent palm-based biodiesel and 70 per cent petroleum-based diesel, is a cleaner fuel and can reduce greenhouse gas (GHG) emissions by up to 23 per cent per litre compared to conventional diesel.

He explained that if biodiesel usage can be widely implemented nationwide, there may be price adjustments for the commodity.

However, Johari declined to elaborate on how it might affect the targeted fuel subsidies, saying it is still too early to disclose details.

"The use of palm biodiesel offers clear environmental benefits. It not only helps reduce GHG emissions compared to traditional diesel, but it is also sulphur-free," he added. - Bernama