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NewsOils and Fats Sector Coverage

Felda Rolls Out B100 Biodiesel to Widen Alternative Fuel Use

Fats and oils processing
August 20, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

The Federal Land Development Authority (Felda) will make its settlements across the country among the first sites to use B100 biodiesel, marking a significant step towards wider adoption of alternative fuel in Malaysia.

Felda chairman Datuk Seri Ahmad Shabery Cheek said the fuel would be introduced at FGV Group mill sites in the near future for use in a range of Felda-owned vehicles, including four-wheel drives, trucks, agricultural machinery and excavators.

Speaking at a press conference on Thursday following a briefing on the B100 biodiesel pilot project, he said: "We will start by using B100 within the Felda ecosystem first, specifically near the mills, for testing and logistics purposes before expanding to other areas."

He added that producing B100 biodiesel, a fuel made entirely from palm oil with no fossil fuel blending, is a major achievement that will benefit not only FGV Group but also strengthen Malaysia's standing internationally.

"When we announce this, it is no longer seen as merely a company achievement, but as proof of the country's ability to produce biodiesel entirely from its own resources," he said.

Ahmad Shabery noted that the use of B100 at Felda also aims to build confidence in its viability under real operating conditions, while demonstrating Malaysia's capacity to reduce its dependence on imported fuel.

"Using biodiesel does not only benefit the environment by cutting carbon emissions, it also has the potential to raise the incomes of settlers and smallholders through higher demand for palm oil," he said.

He explained that Malaysia is the world's second largest palm oil producer, with output of around 20 million tonnes a year. Even so, domestic use for energy purposes remains low relative to the volume exported.

Increasing biodiesel consumption could therefore help reduce reliance on overseas palm oil markets, which are subject to multiple stringent conditions including sustainability requirements and trade quotas.

He noted that over the longer term, the nationwide expansion of biodiesel use will depend on government policy and increased production capacity, including the construction of more processing plants.

He concluded: "We are starting small at Felda, but if policies and capacity are strengthened, it is not impossible for its use to expand nationwide."

Source: Bernama