
Malaysia is exploring palm oil-based biodiesel (B100) as a dual-purpose solution for cleaner transport and stabilising electricity generation during fuel price shocks.
PETALING JAYA: Malaysia is exploring the potential of palm oil–based biodiesel (B100) not only as a cleaner transport fuel but also as a stabilising force for power generation during fuel price shocks.
Taylor’s University engineering expert Assoc Prof Dr Rifqi Irzuan Abdul Jalal said biodiesel could support diesel generator sets and grid-support engines, helping protect the electricity grid when high diesel costs strain operating budgets for backup power and remote generation.
However, he noted that technical readiness remains a major hurdle as generator engines and components must be tested, validated and certified for B100 to ensure reliability.
Without this, the idea of using biodiesel for grid stability cannot be scaled safely.
Even if technical readiness improves, supply constraints will ultimately determine feasibility. Meeting meaningful demand could require production capacity to more than double, making yield and efficiency improvements critical.
While Rifqi acknowledged efforts by the Malaysian Palm Oil Board, he said Malaysia lags behind countries such as China, which have aggressively modernised agriculture through technology, mechanisation and data-driven management.
He stressed that Malaysia must rely more on technology rather than land expansion to support biodiesel growth.
Operational challenges also persist. Palm-based biodiesel has a natural cleaning effect that can benefit engines, but it thickens in colder conditions, potentially causing hard starts or clogged filters in cooler regions.
Storage and handling also differ from fossil diesel, requiring stricter quality control and disciplined supply management. These upgrades add cost but are necessary for reliable scaling.
Another hurdle is equipment and component readiness.
Malaysia’s industry is still largely built around B20 expectations, while wider adoption of B100 requires systematic testing and validation.
Components such as seals, fuel systems and after-treatment systems must be proven under local conditions.
Rifqi added that coordinated action is necessary, with Original Equipment Manufacturers speeding up certification for B100 use, supported by government incentives for testing and validation.
Ultimately, Rifqi argued that biodiesel offers promise as a transitional energy source, but Malaysia must balance technical readiness, supply capacity and food security.
Without careful planning, the push for B100 could recreate the same cost-of-living pressures it seeks to ease.


