Malaysia to roll out 20pc biofuels mandate in 2022

  • Market: Agriculture, Biofuels
  • 05/01/22

Malaysia will increase its on-road biodiesel blending mandate to 20pc (B20) in Sabah and peninsular Malaysia by the end of this year, delegates were told today at the annual Malaysian Palm Oil Council industry seminar.

Kuala Lumpur has already pushed back a nationwide rollout several times because of funding pressure from the Covid-19 pandemic and possibly as record-high crude palm oil (CPO) feedstock prices inflated the cost of subsidising the programme.

Bursa Malaysia-listed CPO futures dropped off towards the end of 2021 after the active third-month contract reached an all-time high of 5,081 ringgit/t ($1,210/t) on 20 October. But supply concerns among buyers following recent flooding across peninsular Malaysia drove an increase back over the 5,000 ringgit/t threshold by today's Singapore close.

The government is now working to upgrade infrastructure at 30-35 fuel depots before the B20 mandate can be launched, which will cost around 50mn ringgit in total.

Biodiesel blending for industrial applications remains at 7pc, with no date set yet for increasing the mandate to B10.

Malaysia has around 2mn-2.5mn t/yr of biodiesel capacity, with a full B20 mandate expected to consume roughly 1.1mn t/yr, leaving plenty of excess volumes for export. Malaysian palm methyl ester biodiesel exports dropped to 306,910t in 2021, the lowest volume in at least four years, according to cargo surveyor AmSpec.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
28/03/24

Baltimore closure to have limited effects on organic ag

Baltimore closure to have limited effects on organic ag

Washington, 28 March (Argus) — The indefinite closure of the Port of Baltimore after a bridge collapse Tuesday morning will likely have a limited short-term impact on organic agriculture imports due to seasonal trends and the location of key import infrastructure. While Baltimore is the US' largest organic ag import port by volume, April is historically the month with the smallest volume of organic imports into the port. About 5,000 metric tonnes (t) of organic corn, soybean, sunflower, and canola products combined come through Baltimore in April on average for the past three years, according to Argus data. May organic agricultural imports through Baltimore average about 17,000 t, but the largest volumes are not expected until the third and fourth quarters, according to Argus organic market research. Organic whole soybeans and soybean meal are the main commodities imported to Baltimore in April which will likely be curtailed. This includes container shipments of organic soybeans and soybean meal from African countries and India, and organic sunflower products from Argentina. Bulk organic shipments to Baltimore are less likely to be curtailed by the port closure since most of those come through facilities at Sparrows Point, which is outside the port and still accessible, according to market participants. In 2023, 92pc of the volume of organic agriculture corn, soybean, sunflower, and canola products imported to Baltimore in April and May was via bulk shipments. On average, 90,000 t of organic corn and 110,000 t of organic soybean products enter the US through Baltimore annually. This accounts for roughly 32pc of total organic corn and 21pc of total organic soybean product imports to the US. Total impact of the port closure on the organic agriculture market is still uncertain, but for now shippers are diverting to other ports in light of the closure. By Rachel Nelson US organic imports into Baltimore (2021-2023 average) 1,000 T Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Read more
News

ACT to partner with LR, Wartsila, and UECC on CNSL


28/03/24
News
28/03/24

ACT to partner with LR, Wartsila, and UECC on CNSL

London, 28 March (Argus) — Dutch supplier ACT Group is collaborating with classification society Lloyd's Register, Finnish engine manufacturer Wartsila, and Norwegian shipping firm United European Car Carriers (UECC) on the development and evaluation of cashew nut shell liquid (CNSL) as a biofuel in marine biodiesel blends. ACT confirmed the launch of a CNSL-based biofuel called "FSI.100", which has gone through extensive engine testing with various blend combinations. The CNSL-based biofuel has now received approval from engine manufactures to be blended as a 30pc component with marine gasoil (MGO) to form a marine biodiesel blend for the purpose of further sea trials. ACT confirmed that the FSI.100 product will benefit from lower acidity, and there is potential for the product to be compatible for blending with fuel oil. CNSL is an advanced biodiesel feedstock, making it a more appealing and price competitive option to buyers compared with other biodiesel feedstocks. The development follows a report by Lloyd's Register fuel oil bunkering analysis and advisory service (FOBAS) that pointed to a correlation between engine fuel pump and injector-related damage in vessels and the presence of "unestablished" CNSL in the utilised marine fuels. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Brazil, France launch €1bn program to protect Amazon


27/03/24
News
27/03/24

Brazil, France launch €1bn program to protect Amazon

Sao Paulo, 27 March (Argus) — Brazil and France launched a four-year, €1bn ($1.1bn) investment program to protect the Amazon rainforest using private and public funds, the countries said on Tuesday as French president Emmanuel Macron is visiting the South American nation. "Gathered in Belem, in the heart of the Amazon, we, Brazil and France, Amazonian countries, have decided to join forces to promote an international roadmap for protection of tropical forests," the two countries said. Under the program, Brazil's public banks — such as the Bndes development bank — and the French development agency will form "technical and financial partnerships." The two countries also agreed to develop new research projects on sustainable sectors and create a research hub to share technologies to develop the bioeconomy. Macron and Brazilian president Luiz Inacio Lula da Silva visited Belem — near the mouth of the Amazon and the host city of Cop 30 — on 26 March. During the trip, indigenous leader and environmental campaigner Raoine Metuktire, of the Kayapo tribe, urged Lula to prevent construction of the 900km (559-mile) Ferrograo railroad , which could lower costs of transporting grains from Mato Grosso state, Brazil's largest agricultural producer. Macron will also visit Rio de Janeiro, Sao Paulo and capital Brasilia. This is his first trip to Brazil, as he had cut ties with the South American country during former president Jair Bolsonaro's administration. Bolsonaro put little focus on environmental protections during his term, policies that his successor has reversed. Brazil now aims to reach zero deforestation by 2030. It reduced deforestation in the Amazon by almost 50pc last year, according to government data. Deforestation in the region hit 196km² in January-February, a 63pc drop from the same period in 2023 and a six-year low, according to NGO Imazon, which focuses on research to promote climate justice in the Amazon. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Ethanol constraints minor on Baltimore closure: Update


27/03/24
News
27/03/24

Ethanol constraints minor on Baltimore closure: Update

Houston, 27 March (Argus) — Ethanol flows in the US northeast may only see minor near term constraints following the closure of the Port of Baltimore due to the collapse of a bridge at the mouth of the waterway. Producers and other market participants expect longer local transit times for trucks carrying hazardous materials — including ethanol — to retail stations because of the collapse of the Francis Scott Key Bridge, which carried nearly 12.4mn cars and trucks in 2023, according to Maryland state data. This will lead to higher associated costs, but market sources say the region's supply chain flexibility, rail access and available stocks should mitigate near-term ethanol supply interruptions. Ethanol rail deliveries into the Baltimore market are expected to increase, offsetting the loss of barge supply for the duration of the port's closure. Railroads Norfolk Southern and CSX have rail access at the Port of Baltimore, while Kinder Morgan operates the primary transload terminal. US east coast ethanol stocks in March are at their highest monthly average since April 2020 at 8.76mn bl, according to the Energy Information Administration. By Payne Williams Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Ethanol constraints minor from Baltimore port closure


27/03/24
News
27/03/24

Ethanol constraints minor from Baltimore port closure

Houston, 27 March (Argus) — Ethanol flows in the US northeast may only see minor near term constraints following the closure of the Port of Baltimore due to the collapse of a bridge at the mouth of the waterway. Producers and other market participants expect longer local transit times for trucks carrying hazardous materials — including ethanol — because of the collapse of the Francis Scott Key Bridge, which carried nearly 12.4mn cars and trucks in 2023, according to Maryland state data. This will lead to higher associated costs, but market sources say the region's supply chain flexibility, rail access and available stocks should mitigate near-term ethanol supply interruptions. Ethanol rail deliveries into the Baltimore market are expected to increase, offsetting the loss of barge supply for the duration of the port's closure. Railroads Norfolk Southern and CSX have rail access at the Port of Baltimore. US east coast ethanol stocks in March are at their highest monthly average since April 2020 at 8.76mn bl, according to the Energy Information Administration. By Payne Williams Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more