Biodiesel Realistic Step To Relieve Diesel Pressure, Stabilise Supply - Experts

By Sakini Mohd Said

KUALA LUMPUR, April 15 (Bernama) -- The government's decision to increase the biodiesel blend rate to B15 is seen as a strategic move in facing the uncertainty of global fuel prices, potentially alleviating cost pressures, strengthening supply, and supporting the country's sustainability agenda.

The measure driven by the crisis in the West Asia is not merely reactive; instead, they reflect a pragmatic approach by leveraging Malaysia's position as the world's second-largest palm oil producer to gradually reduce dependence on diesel imports.

Basically, B15 refers to a blend of 15 per cent palm oil-based biodiesel with 85 per cent petroleum diesel, compared to the current B10. Its implementation will be carried out in stages, starting with B12, without incurring additional costs, as fundamentally agreed upon by the National Economic Action Council (MTEN).

Experts believe that although the impact on prices may not be drastic, the approach still provides 'breathing room' for diesel users, particularly in the transportation and industrial sectors.

Associate Professor Dr. Abdul Aziz from Universiti Putra Malaysia's (UPM) Department of Mechanical and Manufacturing Engineering, Faculty of Engineering, said that increasing the biodiesel blend can reduce dependence on imported diesel, even at a rate of around five per cent.

"This reduction may seem small, but if oil prices remain stable, combined with the increase in biodiesel blend, I believe diesel prices can be reduced a bit. At least there is some relief for pickup truck users, the logistics sector, and the industrial sector," he told Bernama.

Economy Minister Akmal Nasrullah Mohd Nasir said in a global energy crisis briefing yesterday that the government agreed to increase the biodiesel blend rate from B10 to B15, starting with B12, without any additional costs due to the West Asia conflict.

Meanwhile, the National Economic Action Council (NEAC) also agreed that biodiesel is one of the most practical and readily implementable alternative biofuel sources in the near term.

In addition to the cost aspect, the measure also provides advantages in terms of national energy security, UPM Biorefinery Complex head Prof Dr Hidayah Ariffin said that increasing the biodiesel blend can extend the storage period of domestic diesel stocks, thereby ensuring supply stability during the crisis that is expected to take up to 18 months.

"Biodiesel is a renewable fuel produced from local sources. With the existing facilities, the increase from B10 to B15 is expected not to involve significant changes in production costs," she said.

She also emphasised that the concerns regarding the impact on vehicle engines are minimal since blended biodiesel such as B10 and B15 can be used directly without modifications.

In fact, Indonesia's experience, which has implemented the B40 policy and is now considering B50, shows that widespread use of biodiesel does not compromise vehicle performance.

"This makes it practical and easy to implement, especially in the transportation, logistics, agriculture, and services sectors that heavily rely on diesel," she said.

At the same time, the use of biodiesel also contributes to the reduction of greenhouse gas emissions and air pollution, in line with the country's energy transition targets towards cleaner and more sustainable sources, she said.

However, Dr. Chong Siew Huay who is Universiti Teknologi MARA (UiTM) senior lecturer at the Faculty of Management and Business however said that biodiesel is not an absolute long-term solution.

On the contrary, she described it as an 'energy bridge', which is a cost-effective temporary solution because it does not require large-scale new infrastructure development, yet it can reduce dependence on conventional diesel.

The phased approach is also important to avoid market shocks, especially in the context of volatile palm oil and global oil prices, he said.

“However, biodiesel has limitations in terms of sustainability and dependence on commodities, especially palm oil. Therefore, it is not a complete long-term solution, but more of a transitional step.

"In the current context, biodiesel can be considered a 'bridge fuel' to help the country transition towards a cleaner energy system gradually, without jeopardising the stability of the economy and existing systems," she added,

-BERNAMA