Biodiesel production in Malaysia: Current status and challenges

ABSTRACT

In Malaysia, biodiesel was firstly introduced as a policy in National Biofuel Policy 2006 with 5 short term targets, 4 medium terms targets and 2 long term targets. The specific objective of the policy was to increase the use of biodiesel in all sectors in three different phases, which were B5, B7 and B20. The B20 phase supposedly implemented by year 2020. Therefore, the focus of this review is to revisit the biodiesel issues and to delineate the status of biodiesel production and uses specifically in Malaysia based on the information gathered from different sources, namely the journals, the governmental databases as well as the communication with the personnel involved in the industry. Currently, there are 22 biodiesel plants existed in Malaysia, with the sum production capacity 2,762,000 tonnes/year capacity. However, only 19 plants are currently in operation with total annual production at 906,153 tonnes per year. A few factors contributed to this below-capacity output from the plants. The main factor is the delayed of the B20 mandate, which supposedly executed in 2020. The failure of supposedly increment of 13% blend of biodiesel, from 7% mandate in 2016, to 20% in 2020 effected the production, since the excess production will not be able to enter the market. The start of Coronavirus (COVID 19) pandemic in early 2020, make the situation worst, because the demand of the fuel plummeted, due to the lockdown strategy introduced by the Malaysia government to stop the spreading of the disease. At the same time, the bloc of palm oil derivatives from European Union (EU) also effected the biodiesel, as 80% of biodiesel is exported to EU. The combination of internal, external, and unexpected factors like has contributed to the growth of biodiesel industry in Malaysia, despite the available of abundance raw materials and mature technology. However, with the correct strategy, this industry has a potential to take a positive step in the future. © 2022 Author(s).