B20 Biodiesel Mandate in Malaysia Expected to Absorb 1 Million Tons of CPO

The B20 biodiesel mandate in Malaysia is expected to utilize over one million tons of crude palm oil (CPO), said Malaysian Biodiesel Association (MBA) president UR Unnithan. The implementation of the mandate to rollout B20 biofuel with a 20% CPO component for the transport sector has been delayed to December 2021 in Peninsular Malaysia. It has already been implemented in Sarawak since September 2020 and is scheduled to be rolled out in Sabah in June 2021.

Speaking at the virtual Palm and Lauric Oils Price Outlook Conference, Unnithan also said that Indonesia may be implementing the B40 mandate as funding for biodiesel in the republic grows following a revision in export taxes. The taxes rose to as high as US$348 (RM1,435) per ton this month. Indonesia has so far implemented a B30 biodiesel mandate.