Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list

Malaysia's move to B10 biodiesel will raise CPO consumption to 1.2 mil mt/year

Commodities | Energy

COVID-19: Coronavirus outbreak

Agriculture | Biofuels

Platts Biofuelscan

Commodities | Agriculture | Biofuels | Oil

Geneva Biofuels Conference

Agriculture | Oil | Petrochemicals | Polymers

Neste expects global renewable diesel demand to surge over next decade

Malaysia's move to B10 biodiesel will raise CPO consumption to 1.2 mil mt/year

Kuala Lumpur — Malaysia will consume 1.2 million mt/year of crude palm oil once the country fully implements B10 biodiesel across the country, secretary general of the Ministry of Plantation Industries and Commodities Himmat Singh said at the palm and lauric oils conference in Kuala Lumpur Tuesday, March 2.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

"We will also explore the implementation of biofuel program in other sectors such industry and power generation," Singh said.

He added that the ministry was exploring the implementation of B10 -- gasoil blended with 10% palm methyl ester -- nationwide this year.

Trade sources said the move will support CPO prices as there are concerns that production will come back up in April and May amid forecast of good yield.

Malaysia produced 19.6 million mt of CPO last year, up from 19.2 million mt in 2013, data from the Malaysian Palm Oil Board's website showed.

Last year, exports of palm oil product were valued at MR66.12 billion ($18.24 billion), accounting for 8.6% of total merchandise exports from Malaysia, according to Singh.

Currently, Malaysia consumes about 600,000 mt of CPO under a 7% blend of PME and gasoil, Malaysian Biodiesel Association's vice president U R Unnitha told Platts Tuesday.

The B7 mandate was implemented across Peninsula Malaysia in November 2014.

There 21 biodiesel producers in the Malaysian Biodiesel Association, but only seven are said to be actively running their plants and producing PME to meet the biodiesel mandate, said trade sources.

Biodiesel production for the B7 mandate averages 1,000-3,000 mt/month at each producer, Malaysian PME producers said.

Only one to two producers had a 6,000 mt/month offtake, trade sources said.

Malaysia's nameplate biodiesel capacity of its 21 members is 2.7 million mt/year, but current utilization is only 22%, said Unnithan.

Moving to the higher B10 mandate would see producers increasing their plant utilization rate to 37%, he said.

--Esther Ng,
--Edited by Irene Tang,