B10 implementation can boost biodiesel output production

KUALA LUMPUR: The implementation of B10 biodiesel in the country can help boost biodiesel production to one million tonnes a year from the current 700,000 tonnes, on the back of better demand from the transport sector, according to an industry player.

Malaysian Biodiesel Association president UR Unnithan said the country would likely see the mandate to use B10 fuel after the forthcoming 2018 general elections. B10 biodiesel is a blend of 10 per cent palm methyl ester and 90 per cent regular diesel.

“We believe the situation now is the optimal time (to implement B10) as crude oil prices are around US$60 per barrel.

“You are seeing palm oil prices falling below RM2,500 a tonne. It is the perfect time but because Malaysia is in an election mood right now, it might just have to wait until the election is over,” he told Bernama in a recent interview.

Unnithan, who is also Founder and Group Chief Executive Officer of Sumwin Global, pointed out that the government must expedite the use of biodiesel in the country as it supports the palm oil industry.

“Higher consumption of biodiesel provides better support for palm oil prices, which is good for the palm oil industry as a whole, and also for smallholders who would lose income whenever the prices go down,” he said. — Bernama