Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on June 1, 2016.

 

KUALA LUMPUR: Putrajaya plans to strengthen its implementation of the biodiesel programme by increasing the blend for the transport sector to B10, and introducing the B7 blend to the industrial sector from today.

B10 is a mixture of 10% methyl ester and 90% petroleum diesel, while B7 consists of 7% methyl ester and 93% petroleum diesel.

This means all diesel sold at retail pumps nationwide will be B10 beginning June 2016, said the plantation industries and commodities ministry in a statement yesterday.

It said the implementation of the new biodiesel mandates is expected to contribute to a saving of 820 million litres of diesel a year, and provide an annual domestic consumption of 709,000 tonnes of crude palm oil.

The biodiesel for the implementation of the mandates will be supplied by the Malaysian Biodiesel Association, consisting of 22 members throughout Malaysia, it said.

The biodiesel programme was first introduced in phases via the B5 programme in June 2011 for the transport sector, and completed in March 2014 in Peninsular Malaysia.

The programme was later upgraded to B7 and implemented throughout the peninsula, and Sabah and Sarawak beginning December 2014.

The implementation of the B7 mandate will be introduced for the first time in the industrial sector (which covers commercial and power generation).

The ministry stressed that the implementation of the B10 and B7 mandates for both transport and industrial sectors respectively demonstrates the government’s keenness in reducing dependence on petroleum diesel.

“This move also contributes towards reducing greenhouse gas (GHG) emissions through the use of environmentally friendly energy sources,” it said, adding it will contribute to a saving of 2.16 million tonnes of carbon dioxide equivalent annually.

“This is expected to contribute towards meeting Malaysia’s commitment in the Conference of Parties under the United Nations Framework Convention on Climate Change to GHG emission by 45% by 2030 based on 2005 emission intensity,” it said.

The ministry said it had conducted a series of stakeholders’ engagement with transport sector representatives, namely Japan Automobile Manufacturers Association, Malaysian Automotive Association, petroleum companies and biodiesel producers.

“The Federation of Malaysian Manufacturers representing the industrial sector was also consulted,” it said.

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