Malaysia Plans Gradual Shift to B15 Biodiesel Blend

Malaysia is planning to gradually increase its biodiesel blending mandate from B10 to B15 in response to growing energy security concerns amid geopolitical tensions in West Asia. The government intends to begin with an intermediate B12 stage to ensure a smooth transition. Although the increase may appear modest, it is expected to significantly boost biodiesel consumption by up to 50%.

Currently, Malaysia produces around 18–20 million tonnes of crude palm oil (CPO) annually, but only about 500,000 tonnes are used for biodiesel. Under the B15 mandate, demand could rise to approximately 800,000 tonnes, representing about 4% of total CPO output.

The country already has sufficient production capacity, with biodiesel plants capable of producing 2.3–2.4 million tonnes per year, though utilization remains at around 40%. Authorities emphasize that the transition to B15 can be achieved without major new infrastructure, mainly by improving operational efficiency within existing blending systems.