Output from 19 biodiesel plants enough to meet local demand

Deputy prime minister Ahmad Zahid Hamidi says the plants are capable of producing around 1.5 million litres per month.

He said the production capacity of about 1.5 million litres of fuel per month from these plants would be sufficient to meet local demand, amid rising pressure on fuel prices in the market.

“There are currently 19 biodiesel plants producing blends ranging from B15 to B50. We will utilise sludge derived from crude palm oil, of which about 35% will be used to produce biodiesel and Jet A1 fuel,” he told a press conference after officiating RisSMart Grocer here today.

Also present were plantation and commodities minister Noraini Ahmad and Risda chairman Manzri Nasib.

Zahid, who is also rural and regional development minister, said the initiative has already begun and has, in principle, received the backing of the National Economic Action Council, with further coordination to be carried out with relevant agencies and companies.

He said synergy among all participating plants is crucial to lowering production costs, which would in turn influence fuel prices in the market.

“At present, the output of around 1.5 million litres per month has been achieved and we hope this will help reduce costs and bring down overall prices,” he said.

Zahid added that tests conducted on the biodiesel have shown positive results, with no issues identified in its use in vehicles.

“We have carried out testing, including by Petronas, and worked with several vehicle manufacturers to ensure the compatibility of this biodiesel with existing diesel engines.

“In the long-term, it can help stabilise and reduce diesel prices in the country,” he added.

The government had agreed to raise the biodiesel blend from B10 to B15 in response to the global energy crisis.

Economy minister Akmal Nasrullah Nasir had announced that the shift would begin with a phased introduction of B12, which would not incur additional costs as it would utilise existing blending infrastructure.

A 10% blend of biodiesel has been set as the national standard for transport use, with a 20% blend for Labuan, Langkawi and Sarawak, except for Bintulu.

Yesterday, Akmal said that biodiesel, particularly the B20 blend, is safe for use and should not cause any damage to vehicles.