Malaysia is finally going to implement the B15 fuel blend mandate, which it plans to roll out in stages as soon as in a few weeks, according to the Ministry of Economy.
The country, the second-largest oil palm producer in the world, has been trailing Indonesia when it comes to biofuel — languishing for years at the B10 since it first adopted the mandate in 2019. Indonesia, on the other hand, has moved steadily from a 1% blend in 2006 to B35 now, with a scheduled transition to B50 by 2028.
The move comes in response to the energy crisis that has driven diesel prices sky-high, following the closure of the Strait of Hormuz after the US-Iran war erupted.
But even before B15 is rolled out, the Federal Land Development Authority (Felda) is moving straight from B10 to B100. It announced last week that it would introduce B100 biofuel — basically pure, unblended biodiesel from renewable sources — at its settlements soon, targeting Felda-owned vehicles and plantation machinery to test sustainability and reduce diesel dependence.
On paper, that sounds like a grand plan. Felda and other oil palm producers in Malaysia would benefit from higher demand for crude palm oil (CPO), the nation gets to save billions of ringgit in diesel subsidies, and the shift from hydrocarbons would bring significant environmental advantages.
But the reality could be far from what is envisioned, as automakers’ buy-in will be required before the plan can be implemented. This is because automakers of diesel-engine vehicles in Malaysia largely provide a warranty for fuel blends up to B20.
An automotive distributor for a Japanese brand tells The Edge that using B100 in its diesel-powered vehicles would require explicit approval from its principal.
And the transition is not just a matter of switching pumps: A special fuel filter has to be installed in the vehicles before the shift. US automaker Ford, for example, has said its Ranger and Everest models (equipped with a 2.2L and 3.2L Duratorq diesel engine) must be fitted with a B20-compliant fuel filter to maintain performance and reliability.
Nevertheless, Felda’s bold B100 initiative to push for higher content of palm methyl ester (PME) in biodiesel is a commendable proof-of-concept, even if it highlights a glaring systemic gap.
As the global energy crisis tightens its grip, the country needs a concerted “all-hands-on-deck” approach involving automakers, refiners and retailers. If Malaysia is to successfully transition to higher biodiesel blends, the technical hurdles must be cleared at all levels before the fuel even hits the pump.
