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Datuk Seri Dr Ahmad Zahid Hamidi said Malaysia now has 19 biodiesel production plants capable of generating around 1.5 million litres a month.
The Deputy Prime Minister said the expansion in biofuel production, presented to the National Economic Action Council, involves cooperation between government agencies and private plantation companies.
Ahmad Zahid was speaking at a press conference after launching the RisSmart Grocer supermarket here on Sunday (19 April).
He added that the 19 plants currently produce biodiesel blends ranging from B15 to B50, with plans to further improve output by making use of sludge, a by-product of crude palm oil production.
He said: "About 35% of this sludge can be fully utilised to produce biofuel as well as jet fuel (Jet A1)."
He added: "This initiative has already begun, and the National Economic Action Council (MTEN) has approved the proposal in principle."
Ahmad Zahid noted that the government will coordinate efforts with relevant agencies and companies to ensure production costs remain low by strengthening synergies among the 19 plants.
He continued: "With mass production, we expect overall costs to fall and prices to become more competitive."
He said the viability of biodiesel has been proven through various tests, including pilot projects conducted in cooperation with PETRONAS and vehicle manufacturers.
He said: "In my view, and as I have said before, there is no doubt about the potential of this biofuel. It will help stabilise and reduce diesel prices in the country."
Separately, Ahmad Zahid, who also serves as Minister of Rural and Regional Development, said efforts to support commodity prices are continuing, pointing to measures taken to strengthen the rubber sector.
He said that while Prime Minister Datuk Seri Anwar Ibrahim had announced an increase in the subsidy from 2 to 2.50 Malaysian ringgit, additional steps taken by the Rubber Industry Smallholders Development Authority (Risda), including acting as a principal buyer, had helped improve prices.
Source: The Star