National Biofuel Policy.

The Biofuel Policy is a sectoral document formulated as a planned and dedicated approach to address two main challenges (1) find alternative, renewable energy sources to ensure the long-term sustainability of Malaysia's development as fossil fuel reserves dwindle; (2) mitigate associated environmental problems, especially greenhouse gas emissions, by promoting cleaner energy options. In essence, it aims to shift Malaysia towards a more sustainable energy mix, leveraging local resources (like palm oil) to power its development while reducing its carbon footprint. It outlines a comprehensive framework with concrete initiatives aligned with the objectives of the United Nations Framework Convention on Climate Change (UNFCCC).
The National Biofuel Policy sets the platform for attainment of the following objectives (i) supplementing the depleting supply of fossil fuels with renewable resources; (ii) mobilizing local resources for biofuels, mainly focusing on blending processed palm oil with petroleum diesel and converting palm oil into biodiesel (methyl esters), mainly for export; (iii) exploiting local technology to generate energy for the transportation and industrial sectors; (iv) paving the way for exports of biofuels; (v) benefiting from the spin-off effect of more stable prices for palm oil.
The Policy is underpinned by five strategic thrusts. (1) Biofuel for transport: Diesel for land and sea transport will be a blend of 5% processed palm oil and 95% petroleum diesel. This B5 diesel will be made available throughout the country. As this sector is the main user of diesel which is highly subsidised, it will be given priority in this policy; (2) biofuel for industry: B5 diesel will also be supplied to the industrial sector including for firing boilers in manufacturing, construction machinery, and generators; (3) biofuel technologies: research, development, and commercialization of biofuel technologies (including technologies for extraction of minor components therein) will be effected and adequately funded by both the government and private sectors including venture capitalists to enable increased use of biofuel; (4) biofuel for export: worldwide interest reflects the important role of biofuels in energy for sustainable development. Malaysia will have an edge in supplying the growing global demand for biofuel. The establishment of plants for producing biofuel for export will be encouraged and facilitated; (5) biofuel for a cleaner environment: the use of biofuel will reduce the use of fossil fuels, minimize the emission of greenhouse gases (carbon dioxide), carbon monoxide, sulphur dioxide, and particulates. Increased use of biofuel will enhance the quality of the environment.
As for the implementation, to introduce B5 diesel to the Malaysian market, a multi-faceted strategy is underway, encompassing the establishment of clear Malaysian Standard specifications, real-world trials with government vehicle fleets and voluntary industrial users, the installation of public dispensing pumps, and a comprehensive public awareness campaign, all of which will be monitored to enhance its widespread acceptance.