KUALA LUMPUR: Malaysia, the world's largest palm oil producer after Indonesia, will implement the Biodiesel B7 programme for the subsidised sector next month.
This will help increase domestic consumption of palm-based biodiesel.
Plantation Industries and Commodities Minister Datuk Seri Douglas Uggah Embas said implementation would start in stages from November in the Peninsula, with Sarawak, Sabah and Federal Territory Labuan by December.
He said the Cabinet had on October 17 approved implementation of the B7 programme.
"The B7 programme is expected to see the consumption of 575,000 tonnes of biodiesel. This will contribute towards a savings of 667.6 million litres of diesel a year," he told a press conference here today.
Uggah said this after officiating the Malaysian Palm Oil Council's International Palm Oil Trade Fair and Seminar (POTS) 2014 here today.
He also said the move to implement the B7 programme will position Malaysia to be on par with other developed nations in the use of renewable energy sources.
"Countries in the European Union have been implementing the B7 since 2009, and Thailand from January this year. Indonesia has been using the B7.5 from February 2012, and Colombia, the B8 and B10 using palm-based biodiesel," he added.
He said in preparation for the implementation of the B7 programme, the government has conducted a series of engagements with relevant stakeholders, including the Japan Automobile Manufacturers Association, the Malaysian Automotive Association, as well as petroleum companies.
"Based on the consultations, there are no significant issues involved in implementation of the B7 programme," Uggah added.
He said implementation of the B7 programme demonstrates the government's efforts toward the diversified use of crude palm oil, thus reducing dependence on petroleum diesel, as well as greenhouse gas emissions via environmentally friendly energy sources.-- Bernama