KUALA LUMPUR: Putrajaya has decided to progressively roll out the B10 and B7 biodiesel blends for the transport and industrial sectors respectively starting Dec 1 this year.

A source told The Edge Financial Daily that the B10 biodiesel mandate for the transport sector will be implemented in Johor by Dec 1.

The B7 blend for industrial use, meanwhile, will be enforced throughout the country on the same day, said the source.

Meanwhile, Reuters reported the same after sighting an email sent by the Malaysian Palm Oil Board to industry participants.

It added that petrol stations selling the Euro 5 grade diesel are exempted from the B10 mandate but will be required to retail the B7 blend.

It said sensitive industrial machinery that is not suited for biodiesel usage is also exempt from the mandate, although a “technical justification” is required from the machine manufacturer.

The plantation industries and commodities ministry (MPIC) had earlier said it would roll out the programme in June this year.

The biodiesel programme was initiated to reduce dependence on petroleum diesel but the implementation has been delayed.

This was because the ministry received appeals from the Malaysia Automotive Institute saying there was inadequate data that the B10 biodiesel was compliant with the specifications of all carmakers that have invested in Malaysia’s Energy Efficient Vehicle programme.

The B10 biodiesel blend is a mixture of 10% palm methyl ester with 90% petroleum diesel, while B7 is a blend of 7% palm methyl ester with 93% petroleum diesel.

A higher biodiesel mandate would also increase demand for palm oil, which is used as a component of biodiesel. Full implementation of the B10 programme would consume 750,000 tonnes of palm oil a year, the MPIC had reportedly previously.