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MEDIA STATEMENT
MINISTRY OF PRIMARY INDUSTRIES

LAUNCHING OF NATIONWIDE B7 IMPLEMENTATION FOR INDUSTRIAL SECTOR , 29 JUNE 2019
AUDITORIUM LEMBAGA PELABUHAN BINTULU, SARAWAK.

1. The government will launch the mandatory implementation of biodiesel B7 programme (7% palm methyl ester with 93% petroleum diesel) for industrial sector starting on 1st July 2019.

2. On 1st February 2019, the government has already commenced the mandatory implementation of B10 programme (10% palm methyl ester with 90% petroleum diesel). Until now, there were yet any complaints received from the users.

3. The supply of B7 diesel for the industrial sector is coming through the petroleum companies such as Petronas, Shell, Petron, BHP and Chevron by using the in-line blending depot facilities.

4. Due to the current low price of the crude palm oil (CPO), it is now the best time for Malaysia to increase the usage of biodiesel through the impementation of B7 in the industrial sector.

5. The implementation of biodiesel programme will certainly creates a positive impact in reducing the stockpile of palm oil. It will also lift Malaysia’s economy and directly benefited the small holders income.

6. By using palm base biodiesel (B7) in the industrial sector, this will contribute towards GHG emission savings amounting 681,000 tonnes of CO2 equivalent annually and helps the usage of 227,000 tonnes of palm oil a year.

7. The diesel engine that being used in the industrial sectors are much robust compare to the automotive diesel engine that are using the 10% biodiesel (B10). Even, much of the genset have already accepted the biodiesel blending up to B20. Boiler that often use to generate steam in mills can consume biodiesel up to 100% (B100).

8. Ministry of Primary Industries (MPI) together with Malaysia Palm Oil Board (MPOB) have conducted a series of trial-run to test the usage of B10 and B20 in farm machineries, small generators, boilers, ship’s engine and forklift since 2013 without any problem. This is a good innitiatives done by MPOB with the support of other private listed company such as FGV, SOP Green Energy, Sime Darby Oils and many more.

9. As part of the effort to convey the technical and awareness of the usage of palm oil, MPOB together with the Federation of Malaysian Manufacturers (FMM) have conducted a series of seminars on the usage of B7 for industrial sector to the related industry players which include today’s 3rd seminar in Bintulu, Sarawak.

10. Indonesia has already implemented the B20 programme under the subsidised sectors starting from January 2016 and later expanded to the industrial sector starting October 2018. Until now, there were yet any technical problems reported. Even now, Indonesia is going for B30 implementation this year.

11. To conclude, with the implementation of biodiesel B10 in the transport sector and B7 in the industrial sector will support the usage of approximately 760,000 tonnes of palm biodiesel annually. This will save on the foreign currency exchange for the importation of diesel worth RM1.64 billion a year.