06.10.2021 (www.theedgemarkets.com) - KUALA LUMPUR (Oct 6): The government intends to continue with its much delayed effort to implement the B20 biodiesel programme nationwide, said Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin.
The latest nationwide implementation date for the B20 biodiesel mandate, which has so far only been rolled out in Sarawak, Labuan and Langkawi, is at end-2022.
Speaking in the Dewan Rakyat, Zuraida said Covid-19 has caused delays in the upgrading works for biodiesel blending facilities depots.
“This is in view of the limitation of workforce movement from petroleum companies to provide the technical preparations for the depots involved,” she said during the ministry’s winding up session for the 12th Malaysia Plan.
Early preparation for the upgrade of the depots has been completed, comprising design, engineering and assessment works, Zuraida said.
The Ministry of Finance has approved RM35 million in allocation for the front end engineering design, she added.
“The B20 Biodiesel Programme will continue, taking into account the current situation on interstate travels and the risk of Covid-19 outbreak, depending on the phases of the National Recovery Plan,” she said.
Malaysia has seen several delays in the expansion of the B20 biodiesel programme into Peninsular Malaysia and Sabah, currently set at end-2022. It was initially scheduled for implementation in June 2021, but was postponed to early 2022 before the latest delay confirmed in June this year.
Similarly, another key palm oil producer Indonesia has also delayed its B40 programme in order to prioritise its economic recovery from the pandemic.
Malaysia has implemented a B10 biodiesel programme for the transportation sector, as well as B7 biodiesel for the industry since 2019.