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KUALA LUMPUR – Malaysia's National Biodiesel Programme is projected to significantly increase domestic palm oil consumption, reaching an estimated 1.13 million tonnes by the end of 2026. This forecast, released by the Ministry of Plantation and Commodities (KPK), underscores the government's commitment to enhancing the use of palm oil in the energy sector.
The Ministry elaborated that this projection factors in the existing usage of crude palm oil (CPO) in 2025, alongside the anticipated surge following the scheduled implementation of the B15 biodiesel blend from June 2026.
In 2025, the utilization of palm methyl ester (PME) for B10 and B20 blends within the transportation sector, combined with B7 usage in industrial applications, totaled 934,823.31 tonnes. The introduction of B15 biodiesel for domestic transportation, commencing in June 2026, is expected to add approximately 330,000 tonnes to annual CPO consumption.
"Based on the existing CPO usage data for 2025 and the projected increase resulting from the implementation of B15, total palm oil consumption under the National Biodiesel Programme is expected to reach around 1.13 million tonnes by the end of 2026," KPK stated in a written reply published on the Parliament website on July 14.
This information was provided in response to a parliamentary query from Teresa Kok Suh Sim (PH-Seputeh), who sought updates on the progress of upgrading Malaysia's biodiesel depots to handle B20 biodiesel, as well as the expected palm oil volumes and values designated for biodiesel production through the end of the current year.
Regarding the depot upgrades, KPK confirmed that the engineering design work for all four designated depots has been successfully completed. These extensive works encompass the construction of new biodiesel storage tanks, the installation of advanced biodiesel reception systems, and the establishment of new pipelines and metering infrastructure.
Source: mediaselangor.com