Higher biodiesel man­dates from Dec 1

> Phased roll­out of B10 for trans­port sec­tor to kick off in Jo­hor; B7 for in­dus­trial users to have na­tion­wide start

The Sun (Malaysia) - - SUNBIZ -

KUALA LUMPUR: Malaysia will im­ple­ment higher biodiesel man­dates for the trans­port and in­dus­trial sec­tors start­ing from Dec 1.

The so-called B10 pro­gramme, which re­quires a min­i­mum bio con­tent of 10% in biodiesel for the trans­port sec­tor, will be rolled out in phases be­gin­ning with Jo­hor, ac­cord­ing to an email sent by the Malaysian Palm Oil Board to in­dus­try par­tic­i­pants and seen by Reuters.

The B7 pro­gramme for the in­dus­trial sec­tor will start na­tion­wide on the same date, the email showed.

Petrol sta­tions sell­ing Euro 5 grade diesel are ex­empted from the B10 man­date but will be re­quired to re­tail the B7 blend.

Sen­si­tive in­dus­trial ma­chin­ery that is not suited for biodiesel us­age is also ex­empted from the man­date but a “tech­ni­cal jus­ti­fi­ca­tion” is re­quired from the ma­chine man­u­fac­turer.

A full im­ple­men­ta­tion of the B10 pro­gramme is ex­pected to con­sume 750,000 tonnes of palm oil a year, Malaysia’s plan­ta­tions min­is­ter said in Au­gust. A higher biodiesel man­date would in­crease the de­mand for palm oil, which is used as a com­po­nent of biodiesel.

Malaysia, the world’s se­cond-largest palm pro­ducer after In­done­sia, has twice de­layed the im­ple­men­ta­tion of higher biodiesel man­dates this year. It last an­nounced it would en­force the higher man­dates by the fourth quar­ter of 2016. – Reuters

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