Malaysia to Roll Out B15 Biodiesel Blend in Phases to Strengthen Energy Security Malaysia is set to increase its biodiesel blend mandate from B10 to B15, beginning with an initial rollout of B12 biodiesel as part of a staged implementation plan to protect the nation’s fuel supply chain and reduce reliance on imported diesel. The move, announced by Economy Minister Akmal Nasrullah Mohd Nasir, aims to leverage existing biodiesel blending infrastructure while avoiding disruption to industry operations. According to the minister, the ongoing B10 implementation has proven the foundation for higher blends already exists, making the transition to B15 feasible without additional costs. “The government has agreed to increase the biodiesel blend rate to B15, beginning with B12,” he stated, confirming that the rollout will occur in phases to ensure smooth adoption across sectors. The policy forms part of Malaysia’s broader strategy to enhance energy security amid global volatility. By increasing the use of palm oil-based methyl ester (PME) in diesel, the country aims to prolong its domestic diesel supply and cushion the impact of fluctuating global energy markets. The B15 mandate will apply to diesel sold at retail stations, with potential future expansion into industrial and public transport sectors under evaluation. Supporting the initiative, the Malaysian Palm Oil Board (MPOB) estimates that the shift from B10 to B15 will increase national biodiesel demand by more than 300,000 metric tonnes annually. MPOB Director-General Ahmad Parveez Ghulam Kadir noted that the expansion will raise biodiesel consumption by an additional 130,000 tonnes per year in the short term, growing to 204,000 tonnes annually once fully implemented. He emphasized that this increase is unlikely to significantly affect palm oil exports, given Malaysia’s robust production capacity of 2.36 million metric tonnes per year, far exceeding current output of 975,207 metric tonnes. The government has also outlined plans under the upcoming 13th Malaysia Plan to upgrade depots for B20 and B30 blends, with a specific B30 mandate being prepared for commercial and public transport vehicles. These steps follow the earlier launch of the B20 biodiesel programme in February 2020, which demonstrated the viability of higher blends in selected regions such as Labuan, Langkawi, and Sarawak (excluding Bintulu). Officials stress that the policy will not impose additional financial burdens on consumers or producers, as it utilizes existing production facilities and distribution networks. Instead, it is expected to stimulate domestic demand for crude palm oil (CPO), support local farmers, and reduce the outflow of foreign exchange used to import fossil fuels. As global energy markets remain uncertain, Malaysia’s phased approach to increasing biodiesel blending reflects a calculated effort to balance environmental goals, economic stability, and energy independence — using its position as the world’s second-largest palm oil producer to advantage.
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