Malaysia Launch Biodiesel Blending Mandate

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Thursday, 02 June 2011 11:24

Theindonesiatoday.com - Malaysian government has on June 1 officially launched the much awaited B5 palm oil biodiesel blending mandate.

Mission NewEnergy Limited, a company listed on Nasdaq and ASX, expected to benefit from the policy.

"Mission has the largest biodiesel capacity in Malaysia and is well-poised to supply the B5 requirements," said Nathan Mahalingam, group CEO of Mission NewEnergy Ltd.

The mandate, which is being implemented in the central region in the first stage, was officially declared effective by the Malaysia minister for plantation industries and primary commodities.

Under the mandate, all diesel sold will contain 5% biodiesel. Implementation has already commenced with retail stations in Putra Jaya and will reach full compliance among all retail stations by November 1, 2011, resulting in approximately 200,000 tons of biodiesel demand per annum. Once fully implemented on a national scale, demand will increase to 500,000 tons per annum.

Through the Malaysian Palm Oil Board, the government of Malaysia has allocated a sum of RM43.1 million to finance the development of in-line blending facilities at six petroleum depots in the Central Region. The facilities are owned by five oil companies, namely Petronas, Shell, Esso, Chevron, and Boustead Petroleum Marketing.

The government has fixed the supply price of biodiesel to the oil companies, which is linked to the monthly average RBD palm oil price and the price of B5 at the pump will be similar to the retail price of normal diesel, which is currently RM1.8 per liter. (Theindonesiatoday.com)

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