KUALA LUMPUR (May 19): The government is keeping to its plan to roll out its B20 biodiesel programme in Peninsular Malaysia by mid-June next year, though it has postponed the implementation of the same in Sabah and Sarawak due to the Covid-19 outbreak.
The B20 biofuel programme entails the use of a biofuel mixture with 20% palm oil and 80% petroleum diesel.
Sarawak was originally supposed to implement the programme last month, while Sabah was to follow in August this year. Sarawak will now introduce the programme on Sept 1, while Sabah will start next year. As for Peninsular Malaysia, the roll-out date remains on June 15 next year.
This was decided during a meeting between the Ministry of Plantation Industries and Commodities (MPIC) with petroleum companies earlier today, which discussed the B20 biodiesel programme for the transport industry, according to a statement from MPIC.
"The implementation of the B20 biodiesel programme is a government initiative under MPIC to encourage the usage of domestic palm oil. It is estimated that palm oil consumption can be increased by 534,000 tonnes per annum [with the programme]," the statement read.
Currently, the B20 biodiesel programme for the transportation sector has already been introduced in Langkawi and Labuan on Jan 1 and Jan 15 this year, respectively.
The rest of the country, in terms of transportation sector, is currently following the B10 biodiesel programme. As for industrial applications, the B7 biodiesel programme (7% palm oil use) has been in place since July 1 last year.
"Taking into account the implementation of the B20 biodiesel programe for the transportation sector, and the current B7 biodiesel programme for industrial applications, it is estimated that 1.3 million tonnes of palm oil will be used in the country each year," the statement read.
This will contribute to the reduction of green house gases emissions by 3.8 million tonnes of carbon dioxide per year, it added.
The movement control order to contain Covid-19 outbreak has stalled the upgrade of 35 refineries here to supply the B20 diesel mixture, the statement said.
"It is hoped that the new enforcement dates, taking into account current issues and with all parties agreeing to increase the usage of B20 biofuel, will lift the nation's oil palm industry to a better position in the future," the statement further read.
Stay home. Get the news from theedgemarkets.com.