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Malaysia to introduce domestic B20 biodiesel blending mandate by 2020: PM

Singapore — The Malaysian government intends to raise the biodiesel blend percentage to B20 blend by 2020, Prime Minister Mahathir Mohammed said Tuesday.

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The prime minister was speaking in the city of Putrajaya at the launch of the B10 blending mandate, which is expected to reach full implementation by February 2019, according to a statement.

Malaysia only announced the implementation of the long delayed B10 mandate in November. The mandate promises to raise the consumption of CPO in the mandate by around 250,000 mt.

PME producers in Malaysia had been lobbying hard for the B10 mandate and for an industry that had been keen to see Malaysia emulate the Indonesian B20 blending mandate, it was welcome news.

Mahathir quoted the Indonesian example in the statement, saying that Indonesia had successfully implemented its B20 mandate in January 2016.

He also underlined the importance of the biodiesel blending mandate in reducing Malaysia's greenhouse gas emissions and also additional demand for CPO which would reduce Malaysian palm oil stocks and stabilize palm oil prices.

Palm oil prices have been at record lows in 2018 and Malaysian palm inventories surpassed 3 million mt in November for the first time ever, according to data released by the Malaysian Palm Oil Board.

--Samar Niazi, samar.niazi@spglobal.com

--Edited by Jonathan Fox, newsdesk@spglobal.com

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