Prospects and current status of B5 biodiesel implementation in Malaysia

This paper addresses B5 biodiesel programs in Malaysia, global challenges on the production of palm oil. Protective measures for future efficiency as well as continued viability of this renewable energy sector are also discussed. Crude palm oil (CPO) prices are currently suppressed because of high p...

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Bibliographic Details
Published in:	Energy policy 2013-11, Vol.62, p.456-462
Main Authors:	Yusoff, Mohd.Hizami Mohd, Abdullah, Ahmad Zuhairi, Sultana, Shazia, Ahmad, Mushtaq
Format:	Article
Language:	eng
Subjects:	Alternative energy sources Alternative fuels. Production and utilization Applied sciences biodiesel Biodiesel fuels Biomass Challenges and sustainability Crude oil prices Economic data Energy Energy economics Energy efficiency Energy industry Energy policy Energy sector Entrepreneurs entrepreneurship Exact sciences and technology exports feedstocks Fuels General, economic and professional studies Government agencies Industrial sector industry Inventories Inventory Malaysia Malaysian B5 biodiesel status Miscellaneous National policy Natural energy Oil industry palm oils Petroleum industry Petroleum production Prices Production Productivity Studies Sustainable development Technology Transportation Vegetable oils viability
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Summary:	This paper addresses B5 biodiesel programs in Malaysia, global challenges on the production of palm oil. Protective measures for future efficiency as well as continued viability of this renewable energy sector are also discussed. Crude palm oil (CPO) prices are currently suppressed because of high palm oil inventory. Malaysian government has taken a pro-active step in implementing the B5 biodiesel for transportation and industrial sectors through the introduction of B5 biodiesel. The B5 Biodiesel Program which was initially targeted at selected government agencies has been fully implemented for subsidized sectors in the Central Region. The promotion of B5 development is highly attractive due to its potential local feedstock from palm oil industry and the availability of production technologies that offer opportunities for the sustainable development in energy entrepreneurships. Nationally, produced B5 will improve the access to alternative energy services and is expected to help in improving productivity and sustainability. Despite successful local B5 implementation, Malaysia is recently facing global challenges on the biodiesel production which currently remains stagnant due to weak domestic demand and uncompetitive export tax structure. •Prospects of B5 biodiesel implementation in Malaysia.•National Biofuel Policy thrusts pertinent to B5 program.•Successful application of B5 in government and industrial sectors.•Challenges in CPO production, weak domestic demand and export tax.•Reassessment of national policy according to global issues.
ISSN:	0301-4215 1873-6777