Government To Accelerate Biodiesel Blend Upgrade to B15

Economy Minister Akmal Nasrullah Mohd Nasir. BERNAMA FILE PIC

The government is turning to biodiesel to reduce reliance on imported fuels, leveraging Malaysia's existing production capacity and infrastructure to cushion the impact of the global energy crisis.

As such, the National Economic Action Council (MTEN) has moved to accelerate the increase of the national biodiesel blend from the B10 level to B15, beginning with a B12 formulation.

Economy Minister Akmal Nasrullah Mohd Nasir said the integration of green biofuels is the most effective and immediate method to enhance the nation's energy resilience.

He said modifying industrial refining processes would not burden the government's fiscal funds, as it leverages existing blending infrastructure at the country's terminal facilities.

Akmal predicted that the impact of the global energy market cycle would take up to 18 months to peak, necessitating a structural build-up of national economic resilience.

"Biodiesel is highly practical at this time because it can be used directly in existing diesel systems, particularly within the transport, logistics, agriculture, and services sectors," he said during today's Global Energy Crisis briefing.

The technical capacity of the local sector is currently bolstered by a manufacturing capacity of 2.36 million metric tonnes, significantly exceeding the actual production of 975,207 tonnes recorded in 2025.

He said the existing B10 implementation — which blends 10 per cent palm-based biodiesel with conventional diesel — has laid the groundwork for a gradual increase, as part of efforts to strengthen long-term energy security.

Akmal said the commitment was reinforced during a recent working visit to PS Pipeline Sdn Bhd — a joint venture between Petronas Dagangan Bhd and Shell Malaysia Trading Sdn Bhd — at the Klang Valley distribution terminal, where infrastructure readiness, handling systems and blending facilities were assessed.

"As such, the government has agreed to increase the biodiesel blending rate from B10 to B15 — or 15 per cent biodiesel — beginning with an interim move to B12, without incurring additional costs and by fully utilising existing infrastructure," he said.

He said the shift would help extend the country's diesel supply, supported by a broader biofuel mitigation plan, phased upgrades of B20 and B30 depots under the 13th Malaysia Plan, and preparations towards a B30 mandate for commercial and public transport sectors.

Meanwhile, Akmal said the current crisis underscores the risks of overdependence on imported fossil fuels and external markets.

He said a single geopolitical conflict could disrupt routes carrying about one-fifth of the world's oil and liquefied natural gas (LNG), exposing vulnerabilities in the global energy system.

The current global energy crisis was triggered by escalating conflict on Feb 28, when the United States and Israel launched large-scale military strikes on multiple sites in Iran, targeting key facilities across the country.

The situation has since remained volatile, with peace efforts faltering and no clear resolution in sight.

Source: www.nst.com.my