B10 biodiesel proposal stalled

KUALA LUMPUR: A proposal to push through a controversial B10 biodiesel next month has hit more snags, much to the relief of car and oil companies that want validated testing of the palm oil-based fuel.

Firstly, the proposed B10 biodiesel will cost more than the Euro 5 diesel (RM1.70/litre) which currently has a 7% concentration of palm oil, a blend called B7.

Secondly, the proposal to introduce it in the southern zone will be seen as an unfair imposition on the affected pilot zone.

Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong was reported as saying B10 biodiesel would be rolled out in the fourth quarter this year.

However, the government has agreed there must be a consensus on technical issues involving all stakeholders.

A consensus is not expected as oil companies will not want exposure to the liability of supplying B10 unless it is tested and validated by engine makers.

“Sort out the engine warranty first. We don’t need the liability of supplying a fuel that is not approved by engine makers,” he said.

“There are claims that B10 is used in Indonesia but the real picture is that it is only available at some Pertamina stations and nowhere else,” he said.

From the point of view of car companies in Malaysia, the stakeholders agreed that the discussions were in the very early stage.

A key area of concern for the industry players is a common test methodology that addresses the technical requirements of all parties involved.

This is a good opportunity for the Ministry of Plantation Industries and Commodities and the Malaysia Palm Oil Board (MPOB) to do pioneering research on B10 in cooperation with car makers such as BMW, which a year ago supplied a BMW 520d and a BMW 320d to MPOB for testing. – by Yamin Vong