Biodiesel use boosts diesel supply security during crises

LocalEnvironment
3 Jun 2026 • 4:36 PM MYT
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Noraini says palm oil-based B15 biodiesel strengthens national energy security and reduces fossil fuel dependence during supply disruptions.

PUTRAJAYA: The use of palm oil-based biodiesel not only supports the nation’s sustainability agenda but also serves as an important alternative to strengthen diesel supply security during times of crisis, said Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad.

She said the primary consideration behind the proposal to expand biodiesel blending to B15 is to ensure the country has an alternative fuel source should disruptions occur in petroleum diesel supplies.

“The implementation of B15 biodiesel is a strategic government measure to strengthen national energy security, reduce dependence on fossil fuels and support the country’s sustainability agenda through the use of more sustainable alternative energy sources,” she said.

She told reporters this after visiting the Klang Valley Distribution Terminal (KVDT) for the implementation of B15 biodiesel here today.

Noraini said the implementation of B15, which began on June 1, was a government decision aimed at extending supply assurance during crises, and that Palm Methyl Ester (PME) is a viable alternative as it helps prolong the country’s fuel reserves.

She said the government continues to encourage the use of biodiesel in line with the country’s commitment to environmental, social and governance (ESG) objectives and green development.

She said biodiesel implementation in Malaysia currently varies by location, with several areas having already achieved higher blending levels.

According to her, Sarawak, except Bintulu, as well as Labuan and Langkawi, have implemented B20 biodiesel, while other areas are using B10, B12 and B15 blends.

Noraini also said higher biodiesel blending rates have the potential to increase domestic palm oil consumption without affecting the country’s export market.

She said the implementation of B15 is estimated to utilise approximately 0.801 million metric tonnes of crude palm oil (CPO) annually and would not have any impact on export markets.

She said KVDT is a strategic facility that serves as the backbone of the country’s petroleum storage and distribution network, particularly for the Klang Valley.

“This facility also serves as one of the country’s main biodiesel blending centres in support of the national biodiesel programme,” she said.

Noraini said the national biodiesel programme is supported by a comprehensive ecosystem comprising 452 palm oil mills, 54 palm oil refineries, 19 biodiesel plants and 34 biodiesel blending depots nationwide before the fuel is distributed to more than 4,400 petrol stations for consumer use.

She said the extensive infrastructure demonstrates that Malaysia has the capacity, expertise and strong logistical capability to implement higher biodiesel blending levels in a gradual and systematic manner.

She added that the national biodiesel programme has been implemented in stages since 2011, beginning with B5 before being expanded to B7 and B10.

“In line with the direction of the National Biofuel Policy, the government is now implementing the increase to B15, which came into effect on June 1,” she said.