Malaysia to implement higher biodiesel mandates from Dec

[KUALA LUMPUR] Malaysia will implement higher biodiesel mandates for the transportation and industrial sector starting from Dec 1.

The so-called B10 programme, which requires a minimum bio content of 10 per cent in biodiesel for the transport sector, will be rolled out in phases beginning with the state of Johor, according to an email sent by the Malaysian Palm Oil Board to industry participants and seen by Reuters.

The B7 programme for the industrial sector will start nationwide on the same date, the email showed.

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

Sensitive industrial machinery that is not suited for biodiesel usage is also exempted from the mandate but a"technical justification" is required from the machine manufacturer.

A full implementation of the B10 programme is expected to consume 750,000 tonnes of palm oil a year, Malaysia's plantations minister said in August. A higher biodiesel mandate would increase the demand for palm oil, which is used as a component of biodiesel.

Malaysia, the world's second-largest palm producer after Indonesia, has twice delayed the implementation of higher biodiesel mandates this year. It last announced it would enforce the higher mandates by the fourth quarter of 2016.

REUTERS