KUALA LUMPUR: The government is confident of implementing the B10 biodiesel programme this year, said Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas.
He said the move was in line with the country’s commitment as a member of the Council of Palm Oil Producing Countries with Indonesia to increase the usage of palm oil in biodiesel.
“Indonesia is currently implementing B15 and is moving towards B20. We have informed them that we will move to B10 as soon as we feel it is practicable,” he told reporters after delivering a keynote address at the Palm and Lauric Oils Price Outlook Conference and Exhibition 2016 (POC 2016) here today.
He said the ministry was currently undertaking extensive consultations with all the stakeholders to ensure the acceptance of the policy that will be implemented.
“Some testings needed to be done and final discussion will be carried out to make sure the implementation will be as smooth as possible,” he said.
On Malaysia’s slower implementation of biodiesel programme as compared to Indonesia, Unggah said, the situation was due to the different structural system in both countries as well as the cost involved and the availability of crude palm oil (CPO) stock.
“We want to to be practical. For us, we feel that B10 is sufficient at the moment in view of our stock and the cost involved,” he said.
Nevertheless, Uggah said, he was confident Malaysia has efficient facilities to make the new blend of biodiesel as soon as possible after the decision has been made.
“As far as facilities are concern, Malaysia has set up an efficient system which can blend the new biodiesel within two days,” he said.
On the implementation of export tax for palm oil, Uggah said, it would only be enforced in April if average CPO prices March reached RM2,250 per tonne.
“We will see the price for March and determine the tax in April. As soon as the price touches RM2,250, the tax rate will be at 4.5 per cent,” he said.
Themed “Managing Market Uncertainties: Our Global Solution”, POC 2016, which started yesteday until March 9, covered robust conversation on price and market outlook and opportunities in the palm and lauric oils industries.