Malaysia will postpone its B5 biodiesel mandate for the whole country to the end of the year, according to the Ministry of Plantation Industries and Commodities.
Originally targeted for July, the program was delayed due to the construction of 15 blending facilities in Sabah, Sarawak and Labuan taking longer than expected, said Minister Datuk Seri Douglas Uggah Embas. B5 biodiesel is made up of 5 percent palm methyl ester and 95 percent petroleum blend.
The Malaysian government introduced the program — which mandates the use of diesel with 5 percent of its volume derived from renewable resources such as plant oils — in the central part of the country in 2011.The mandate has since ben extended in phases to the rest of the country, with several regions introducing it in March 2014. Monthly B5 consumption is averaging about 20,000 tons per month this year, but that target will not be reached until eastern Malaysias production and distribution come online, according to a July report found on the USDA Foreign Agriculture Services website.
Consumption of B5 throughout Malaysia is currently 225,000 tons, with a potential increase to 500,000 tons. When B5 is fully implemented in 2014, another 25,000 tons of consumption is expected, with a potential biodiesel usage of 2.6 percent throughout Malaysia in 2014.