Biofuel policy of Malaysia
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The biofuel policy of Malaysia is based on Malaysia's National Biofuel Policy document. It was launched by the federal government of Malaysia on 10 August 2005. The policy is primarily aimed at reducing the country's fuel import bill, further promoting the demand for palm oil, which is expected to be the primary commodity for biofuel production in Malaysia, as well as to shore up the price of palm oil especially during periods of low export demand.
[edit] Principles
The Malaysia's National Biofuel Policy (interchangeably known as the National Biodiesel Policy) entails a four-prong strategy, which encompass:
- Producing a biodiesel fuel blend of 5% processed palm oil with 95% petroleum diesel.
- Encouraging the use of biofuel among the public, which will involve giving out incentives for oil retail companies to provide biodiesel pumps at fueling stations.
- Establishing an industry standard for biodiesel quality, which will be the responsibility of SIRIM.
- Setting up of a palm oil biodiesel plant, which is targeted to be built in Labu, Negeri Sembilan.
[edit] Development
Yanmar, a Japan-based global manufacturer of diesel engines planned to build a research facility in Malaysia to conduct research on the development of palm oil biodiesel. It plans to develop and test biodiesel for the industrial diesels it develops for its machines and generators. The research facility will be set up in Kota Kinabalu.
