Malaysia explores biodiesel expansion for sustainable fuel
He noted that while Malaysia's biodiesel program has been in place since 2011, progress towards higher blends like B20 has been slow due to financial and logistical hurdles.
'In 2019, we mandated B7 for industries and B10 for logistics, but moving to B20 requires RM580 million in capital expenditure. We are studying the financial impact and subsidy mechanisms before implementation,' he explained during the launch of the B30 biodiesel pilot project at Guthrie's Golden Hope Academy in Carey Island.
The B30 initiative, led by SD Guthrie Bhd, involves switching all plantation machinery and company diesel vehicles to a 30 per cent palm biodiesel blend.
This fuel reduces greenhouse gas emissions by up to 23 per cent per litre compared to conventional diesel. Johari emphasised that wider biodiesel adoption could influence palm oil prices but declined to comment on potential fuel subsidy adjustments, stating it was premature to disclose details.
'The environmental advantages are clear. Palm biodiesel cuts emissions and is sulphur-free, making it a greener alternative,' he added.
The government continues to assess the economic and infrastructural feasibility of scaling up biodiesel usage across industries. - Bernama
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BusinessToday
3 hours ago
- BusinessToday
Tariff Cut by US Won't Affect Malaysia's Commodity Competitiveness, Minister Says
The US' 19% import tariff on Malaysian goods will not affect the global competitiveness of the country's commodities, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said. He noted that the revised rate, down from the previous 25%, remains fair and on par with regional peers, including Indonesia, the world's top palm oil producer, which is also subject to the same tariff. 'Indonesia is number one, and we're number two in palm oil. They're also subject to a 19% tariff, so this is reasonable and fair,' he said when asked about the potential impact of the tariff on Malaysia's commodity exports. The revised US tariff came into effect at 12:01am on Aug 1, 2025, with a seven-day grace period granted for goods already in transit to mitigate immediate supply chain disruptions.
The Star
4 hours ago
- The Star
Malaysia's commodities remain competitive even with tariffs, says Johari
Defence Minister Datuk Seri Mohamed Khaled Nordin (right) handing over a token of appreciation to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani (second from right), who officiated the Pasir Gudang division Umno annual general assembly here. JOHOR BARU: The newly revised 19% tariff imposed by the United States on Malaysia is not expected to impact the competitiveness of the nation's commodities in global markets, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. He noted that the tariff remains competitive compared to other Asean countries, including Indonesia, which also faces the same rate. "The 19% tariff imposed by the US on Malaysia is among the lowest in Asean countries, and even Indonesia, the world's largest palm oil producer, is subject to the same tariff rate," he explained. "In the context of palm oil, Indonesia is the largest producer and we are number two, but Indonesia is also subject to 19% like Malaysia, so there is no problem," he added. Johari made these remarks at a press conference after officiating the Pasir Gudang Umno division annual general meeting. He was responding to queries about whether the 19% tariff would affect the country's commodities on the international stage. It was previously reported that Malaysia will now face a 19% tariff on exports to the US, reduced from the previous 25%, as per an executive order signed by US President Donald Trump. The new tariff structure takes effect in seven days and applies to goods entering the US for consumption, with limited exceptions for shipments already in transit. Signed on July 31, 2025, the order amends Executive Order 14257 and imposes revised ad valorem duties on multiple trading partners, including all major Asean nations. Under the latest tariff list, Malaysia, Thailand, Indonesia, the Philippines and Cambodia each face a 19% rate.
The Sun
5 hours ago
- The Sun
US tariff rate won't affect Malaysia's commodities market, says Johari
JOHOR BAHRU: The United States' decision to impose a 19 per cent reciprocal tariff on Malaysian goods will not affect the competitiveness of Malaysia's commodities in the global market, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. He stated that the tariff rate remains competitive compared to other ASEAN nations, including Indonesia, which faces the same rate. 'We're almost on par with the lowest rates in ASEAN. For example, Indonesia is the world's top producer of oil palm, and we're number two. 'They are also subject to the 19 per cent rate, so for us, 19 per cent is fair. It's not a problem,' he said. Johari made these remarks after attending the Pasir Gudang UMNO Division delegates meeting earlier today. The US announced the new tariff rate yesterday, reducing it from the previously proposed 25 per cent. The revised tariffs, effective August 1, 2025, will apply to imports entering the US seven days after the announcement, as stated on the White House's website. - Bernama
