Malaysia expands B15 biodiesel programme and advances several regions to B20 blend

Malaysia is continuing the expansion of its biofuel policy by rolling out the mandatory B15 palm oil-based biodiesel blend nationwide. At the same time, several regions have already moved to the higher B20 blend, reflecting the country’s broader efforts to support its energy transition and increase the use of renewable fuels.

Plantation and Commodities Minister Noraini Ahmad announced that the B20 biodiesel blend has been adopted in Sarawak (excluding Bintulu town), as well as in the federal territories of Labuan and Langkawi. However, many other parts of the country continue to operate under the existing B10 and B12 biodiesel programmes.

According to the minister, the implementation of B15 in Peninsular Malaysia began on June 1 and will be gradually expanded to fuel stations across the country. The rollout is supported by dedicated biodiesel distribution infrastructure to ensure a smooth transition to the higher blending mandate.

The government has dismissed concerns that increased domestic biodiesel consumption could reduce palm oil exports. Officials estimate that nationwide B15 implementation will require around 801,000 tonnes of crude palm oil annually, a volume that is not expected to disrupt export commitments or existing trade flows.

Malaysia’s biodiesel programme is currently supported by 19 licensed biodiesel production plants operating nationwide. The government views the initiative as a key measure to boost domestic demand for palm oil, reduce carbon emissions, and advance the country’s long-term renewable energy and sustainability objectives.

Tags: Malaysia, palm oil, biofuel