Malaysia will raise its biodiesel-fossil diesel blending target up to 15pc (B15) from the current B10, the country's economic affairs minister Akmal Nasir said this week.
The country will first start with a B12 blend, which will use existing blending infrastructure without requiring additional investments, Nasir said. Malaysia's biodiesel production capacity for 2025 stands at 2.36mn t, while actual production for the year was less than half at 975,200t, he said. No timeline was laid out for a move towards the higher B15 blending target.
The higher B12 blend ratio should start next month, a biodiesel producer said, adding that they were awaiting further details from blenders. Another already received a request to deliver higher volumes of biodiesel.
Nasir visited PS Pipeline — a joint venture between Petronas Dagangan Berhad and Shell Malaysia Trading — at the Klang Valley Distribution Terminal earlier this week to ascertain the infrastructure's capability to store and distribute biodiesel blends.
The government will also hold meetings with the oil industry technical committee to ensure implementation runs smoothly, Nasir said.
Malaysia previously highlighted plans to upgrade depots in phases to supply biodiesel blends up to B20-30, under the 13th Malaysia plan released in July 2025, along with preparations for a B30 mandate for the commercial and public transport sectors.
The Malaysian Biodiesel Association earlier this month urged the government to speed up rolling out higher biodiesel blends to strengthen energy security, in light of supply disruptions and price volatility for conventional fuels due to the ongoing war in the Middle East.
