Malaysia targets B30 mandate for heavy vehicles by 2030

Spanish Market: Agriculture, Biofuels, Biomass, Chemicals
30/08/23

Malaysia will target 30pc biodiesel blending (B30) in heavy land vehicles by 2030 when palm oil-gasoil spreads are projected to be economically viable, according to the country's national energy transition roadmap (NETR) released on 29 August.

Putrajaya, the government's administrative centre south of the capital Kuala Lumpur, seeks to do a "comprehensive review" of the biodiesel blending programme to ensure the blending rate is achievable with a B30 mandate by 2030, while aiming to increase biorefinery capacity to 3.5bn litres and biomass and biogas power generation capacity to 1.4GW by 2050, the roadmap document said.

The NETR will focus on two key segments of Malaysia's bioenergy potential — agriculture-based bioenergy and waste-based bioenergy such as used cooking oil (UCO).

Malaysia will explore bamboo as a bioenergy feedstock while also supporting research for agriculture-based bioenergy, while developing third-generation bioenergy from algae.

The world's second largest palm oil producer will also strive to improve acceptance of palm derivatives such as crude palm oil and palm oil mill effluent (Pome) oil. The combined bioenergy generation potential of palm oil related residue is at 2,850 MW, the report said.

The country would target scaling up UCO collection by increasing collection facilities, with state-owned energy firm Petronas already having started a UCO collection pilot at its gasoline stations.

Malaysia is expected to produce 240,000 t/yr of UCO by 2030, according to the roadmap document.

SAF blending mandate

Malaysia will also first seek to establish a 1pc sustainable aviation fuel (SAF) blending mandate while obtaining SAF certification from international bodies, with the mandate rising to 47pc by 2050.

Putrajaya has identified hydroprocessed esters and fatty acids (HEFA) as the frontrunner technical pathway for SAF output in the near term, with Petronas signing an agreement with the Malaysia Palm Oil Board on 14 August to study all types of palm wastes for SAF and hydrotreated vegetable oil (HVO) production.

The state-owned refiner's upcoming biorefinery at the Pengerang integrated complex will be able to produce SAF, with completion targeted by 2026.

Malaysia also expects alcohol-to-jet (AtJ) and gasification-integrated Fischer-Tropsch (GFT) technologies to play a big role in long-term SAF production, the roadmap document said.

Neighbouring country Indonesia's state-owned energy firm Pertamina has also begun trialling the utilisation of SAF in its jet engines.

By Ryan Ang

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.

29/04/25

India’s TSPL starts up torrefied bio-pellet plant

Singapore, 29 April (Argus) — India's private sector utility Talwandi Sabo Power (TSPL) has set up a torrefied bio-pellet manufacturing facility in the northern state of Punjab, to ensure steady biomass supply to its 1.98GW coal-fired plant. The pellet plant has a capacity of 500 t/d or 182,500 t/yr of torrefied bio-pellets, and use agricultural stubble or residue as feedstock, according to TSPL, a unit of mining conglomerate Vedanta. The Punjab region generates around 15-20mn t/yr of crop stubble, according to TSPL. The plant had already purchased over 800,000t of agricultural stubble, which it will convert to around 640,000t of torrefied bio-pellets. The utility is also targeting to reduce "5pc use of coal daily" by replacing the fuel with torrefied bio-pellets. TSPL also co-fires 450 t/d of torrefied biomass that is purchased from other suppliers in the open market. The utility typically seeks torrefied pellets made from agricultural residue with a minimum of 50pc raw material from stubble, straw, or crop residue from rice paddy. The gross calorific value of pellets procured for its plant usually ranges between GAR 3,400-5,000 kcal/kg. Vedanta's aluminium unit had also used biomass briquettes for power generation. Its alumina refinery in Lanjigarh, Odisha consumes about 20 t/d of biomass briquettes, according to Vedanta. The briquettes are made from agricultural residue sourced from farmers in India. By Nadhir Mokhtar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US winter wheat recovers with much needed rain

28/04/25

US winter wheat recovers with much needed rain

St Louis, 28 April (Argus) — The outlook for US winter wheat improved sharply over the week ending 27 April following much needed rain. US winter wheat acres rated in good-to excellent condition gained four percentage points over the prior week, according to US Department of Agriculture (USDA) data, reaching 49pc of the crop. Kansas, the largest US winter wheat state by acres, had been trending towards being a point of concern as the good-to-excellent ration for the wheat crop in the state had fallen by 10 percentage points from the week of 6 April. With the recent update, Kansas winter wheat was rated 47pc in good-to-excellent condition, 14 percentage points ahead of the five-year average. Other key winter wheat states improved as well, with the good-to-excellent ratios in Nebraska and Texas increasing by three and four percentage points, respectively. In contrast, crop conditions in Wyoming continued to fall, down 37 percentage points from the five-year average with only 2pc of the crop rated in good-to-excellent condition. The week ahead could see additional improvements for Kansas and Texas, with large portions of the two states projected to receive a half an inch of rain or more over the next seven days according to the National Oceanic and Atmospheric Administration (NOAA). Colorado and Wyoming are projected to receive rain as well, but current estimates suggest it is likely to be too far west, and too small an amount to have a significant impact. Corn, soy planting pace divided by rain US corn planting remained largely on-pace, with 24pc of the crop planted as of 27 April, two percentage points ahead of the five-year average according to USDA data. Large gains were made across the western half of the US corn belt, with Minnesota, Nebraska, South Dakota, Iowa, Missouri and Kansas advancing 12 percentage points or more during the week. In states east of the Mississippi River, the pace of planting has been slower due to wet fields and continuous precipitation. As of 27 April, corn planting in Illinois was 10 percentage points behind the five-year average, while Wisconsin and Indianan were both three percentage points behind. Soybean planting made progress as well, increasing by 10 percentage points from the prior week to 18pc planted. The week ahead is likely to see planting advance more slowly and could result in the discrepancy in planting pace between the eastern and western half of the US increase. Heavy precipitation is projected to occur across most of the central US starting the evening of 28 April, and persist into the middle of the week according to NOAA projections. By 1 May, precipitation is expected to be mostly moved out of the western portion, with rains projected to occur east of the Mississippi into the coming weekend. By Ryan Koory Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil to hold auction to recover degraded land

28/04/25

Brazil to hold auction to recover degraded land

Sao Paulo, 28 April (Argus) — Brazil's finance, environment and agriculture ministries will host a second auction to recover 1mn hectares (ha) of degraded lands in all Brazilian biomes except the Amazon, the national treasury said on Monday. The auction will be a part of Eco Invest, a currency-hedging program targeting renewable and low-carbon projects to draw foreign investment, announced in February 2024. The finance ministry and central bank developed the program with the World Bank and the Inter-American Development Bank. The auction is part of New Brazil, a wider energy transition project within the finance ministry. The project aims to finance conversions of degraded lands in different biomes to sustainable and productive ecosystems through private investments. The Amazon biome, the most hit by deforestation, will receive a "customized and exclusive auction" that will be announced later, the environment ministry said. Participants must submit project proposals to the national treasury by 13 June. The government expects to raise up to R10bn ($1.76bn) in the auction. Land-use change and deforestation Emissions from land-use change and deforestation in Brazil reached 1.06bn metric tonnes of CO2 equivalent (tCO2e) in 2023, down by 24pc from a year earlier, according to greenhouse gas tracking platform SEEG. These activities have been leading Brazil's total emissions since 1990 — when historic tracking began — followed by agriculture and cattle raising and the energy sectors. There are currently 280mn ha of farmlands, of which around 29pc are degraded. The government aims to recover up to 40mn ha of grasslands in the next 10 years, the environment and climate change ministry said. The Eco Invest auction will finance the first round of the initiative, dubbed the Green Way program, according to the agriculture ministry. Brazil aims to reduce its total greenhouse gas emissions by 67pc by 2035 from its 2005 levels and sees reducing deforestation as one of its main ways to achieve that goal. The country will host the upcoming UN Cop 30 climate summit in Belem city, in the Amazon biome, as the administration looks to lead the global energy transition . By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s Erex starts up biomass power plant in Vietnam

28/04/25

Japan’s Erex starts up biomass power plant in Vietnam

Tokyo, 28 April (Argus) — Japan's renewable energy developer Erex has started commercial operations at the 20MW Hau Giang biomass-fired power plant in Vietnam, the company announced on 25 April. The power plant in southern Vietnam's Hau Giang province is Erex's first biomass-fired generation project in the country and burns around 130,000 t/yr of rice husks. The electricity generated by the plant is sold under Vietnam's feed-in tariff (FiT) scheme. Erex aims to build up to 18 biomass-fired power plants in Vietnam following Hau Giang, and five plants in Cambodia. The company has started building two 50MW plants in northern Vietnam. These plants are expected to come on line by mid-2027 and burn wood residues. Erex also plans wood pellet production projects in southeast Asia, with up to 20 factories in Vietnam and several ones in Cambodia. The company's first wood pellet factory in Vietnam with a capacity of 150,000 t/yr has already started commercial production in late March. Erex's profits from projects in Vietnam and Cambodia are expected to grow rapidly and will account for more than half of its whole profits around 2030, according to the company. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Orbia focused on cost in face of weak PVC market

25/04/25

Orbia focused on cost in face of weak PVC market

Houston, 25 April (Argus) — Mexico-based chemicals producers Orbia is focusing on reducing future costs as the broader polyvinyl chloride (PVC) industry faces weakening market dynamics. Orbia said Friday it would focus on maintaining strict discipline on fixed costs, working capital, and capital investments to weather the turbulent global economic landscape. The company is targeting $250mn in savings by 2027, with cumulative savings of $160mn by the end of 2025. The company also expects $75mn of divestments by the end of the year in its building and infrastructure segment. Plants and related infrastructure in Europe were the primary targets of the optimization, according to company officials on the first-quarter earnings call. Orbia chief executive Sameer Bharadwaj said the company could revise capital expenditures lower from its initial $400mn target provided earlier this year should market conditions further deteriorate. Short-term operating costs currently face lower levels with falling ethane prices, a critical feedstock to manufacture ethylene for PVC production. The focus on cost management was spurred by sluggishness in the global PVC market. Chinese and US PVC producers drove export prices lower as a means of moving excess capacity, which Orbia expects to continue. "PVC pricing is as low as it gets" Bharadwaj said. He added producer margins would be squeezed further if product prices continue to decrease. Orbia posted a $41mn profit during the first quarter, down from the $106mn profit a year earlier. Orbia's polymer solutions segment, which includes PVC production, reported $6mn loss during the three-month period because of lower global prices for vinyls and a force majeure at its Coatzacoalcos, Veracruz, plant that was lifted in mid-April. Orbia made a $24mn profit during the same period a year ago. The building and infrastructure segment, inclusive of PVC products, posted a $3mn profit for the quarter compared to a $33mn profit a year earlier. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2025. 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