Malaysia: Dr Mahathir sets 2020 target for B20 biodiesel

  • MALAYSIA must compete more aggressively in the biodiesel sector or be left behind by fellow palm oil producers Indonesia, who have already declared the mandatory use of a 20% biodiesel blend (B20) in Sep 18, said prime minister Dr Mahathir Mohamad.
  • Dr Mahathir said not only has Indonesia surpassed Malaysia and emerged as the largest producer of palm oil in the world, the republic has implemented the B20 programme, which makes it mandatory for the transport sector to use a blend of 20% of palm oil with 80% diesel fossil fuel.
  • Dr Mahathir said the B10 biodiesel programme (10% palm methyl ester with 90% petroleum diesel) is to progressively replace the B7 programme (7% palm methyl ester with 93% petroleum diesel) by Feb 19.
  • Petroleum companies have two months to switch from the current B7 to B10 biodiesel before its mandatory implementation on 1 Feb 19.
  • Dr Mahathir hopes that all parties will be fully prepared to change to B20 by 2020. Dr Mahathir said through this effort, 650,000 smallholders of palm oil will continue to enjoy a more stable palm price and increase in revenue.

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