Labuan will be the the next federal territory to implement the B20 programme this month
by SHAHEERA AZNAM SHAH/ pic by TMR FILE
THE B20 biodiesel programme has begun in Langkawi, Kedah, for the transportation sector beginning Jan 1, 2020, said Primary Industries Minister Teresa Kok (picture).
In a statement yesterday, Kok said the next state or federal territories to implement the B20 programme is Labuan, Sabah, which will also be introduced this month.
“We would like to announce that Langkawi has begun using the B20 biodiesel blend of methyl ester for the transportation sector.
“Petronas station in Kampung Tok Senik in Langkawi is the first petrol station in Malaysia to sell B20 biodiesel.
“Labuan will be our next destination to introduce the B20 biodiesel programme, which will be in January,” Kok said yesterday.
She added that the B20 programme will continue to be introduced in phases in Sarawak and Sabah before it being fully implemented in Peninsular Malaysia.
The programme is expected to increase the local palm oil demand by 500,000 tonnes annually from the current 761,000 tonnes used by B10 programme.
“The B20 programme will increase Malaysia’s demand of palm oil by 500,000 tonnes from the current volume take-up by the B10 programme,” she said.
Kok added that the government has agreed to standardise the retail price of B20 biodiesel to the current price of B10 at RM2.18 per litre.
“This would mean that consumers could enjoy a cleaner vehicle fuel at a standardised price,” she said.
She further said the B20 biodiesel will gradually replace the lower blend of biodiesel until all fuel blending facilities and petrol stations in the country are equipped to manage the higher blending of biodiesel.
“The main objective of B20 biodiesel is in line with the country’s intention to reduce greenhouse gas emissions and create a cleaner environment for Malaysia.
“Every one tonne of biodiesel usage could reduce at least three tonnes of carbon dioxide released by diesel-fuelled vehicles.
“It is estimated that 3.2 million tonne of greenhouse gas could be reduced annually through the implementation of B20 biodiesel,” she said.
While the global crude palm oil (CPO) price has reached the RM3,000 per tonne benchmark, Kok said the B20 biodiesel programme could help maintain the commodity’s price rally.
“With the rally of CPO price, which has surpassed the RM3,000 per tonne level, the B20 programme could maintain the rising momentum of the price, while helping to increase the income of oil palm smallholders.
“The government, particularly the Ministry of Primary Industries, will ensure the B20 programme be implemented according to the schedule,” she said.