Malaysia: Envo Diesel Biofuel to be Replaced with Methyl Ester

As a result,  palm-based methyl ester will be used as the biofuel under the Malaysian Biofuel Policy introduced in March 2006. The palm-based methyl ester, dubbed B5, will initially be used by the government's fleet of diesel vehicles from 1st February 2009 .

Engine manufacturers had argued that Envo Diesel, comprising five per cent palm olein and 95 per cent diesel, clogs the engine, Chin said.  He said this at a public lecture on "Palm Oil: Food or Biodiesel? Policy Implications for the Fu-ture" in Kuala Lumpur yesterday. Chin was the inaugural speaker in a series of public lectures organised by Hap Seng Consolidated Bhd, Hap Seng Plantations Holdings Bhd and Malaysian Mosaics Bhd.

B5 will be available at selected petrol stations, he said. The Malaysian Standard for B5 bio-diesel for both domestic and export purposes has been established.  On the expected B5 consumption, Chin said 70,000 tonnes of Envo Diesel may be used by government vehicles annually.

"The blending of palm biodiesel ranging from two per cent to five in the national diesel system can potentially reduce palm oil stocks by between 200,000 tonnes and 500,000 tonnes a year.
Malaysia produced 15.82 million tonnes of palm oil last year, or 10.3 per cent of 154 million tonnes of oils and fats produced globally.

Chin noted that methyl ester is derived from soyaseed or rapeseed as biofuel is increasingly popular in the US and Europe. As of end-October, a total of 14 biofuel plants are in production in Malaysia, with an installed capacity of 1.68 million tonnes.  Chin said the country produced 129,715 tonnes of palm-based methyl ester last year, with 95,013 tonnes worth RM253.2 million exported.  The government has to date issued 91 licences for biofuel production, he added.

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