
SD Guthrie's B30 pilot project to set national benchmark for biodiesel use
THE launch of Malaysia's first B30 biodiesel pilot project in Carey Island is expected to serve as a national model for reducing carbon emissions and reshaping sustainability standards in the agro-business sector.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the initiative by SD Guthrie Bhd demonstrates how targeted collaboration between government, industry and research institutions can lead to impactful decarbonisation in the palm oil value chain.
'I am confident this B30 pilot project in Carey Island will become a national model for other plantation companies to further reduce carbon emissions and set new benchmarks for the agro-business sector,' he said when officiating the launch at SD Guthrie's Golden Hope Academy today.
Johari said the transition to B30 biodiesel — a blend of 30% palm-based biodiesel and 70% petroleum diesel — supports the country's broader ambition to achieve net-zero emissions by 2050.
The pilot will cover all plantation vehicles and operational machinery at SD Guthrie's Carey Island estates.
'The use of palm biodiesel will not only reduce dependency on fossil fuels but also empower smallholders and local communities involved in palm oil production,' he added.
Johari said initiatives like this demonstrates Malaysia's commitment to clean energy as well as improves the reputation of palm oil as a legitimate part of the climate solution.
'It will also continue to show how palm oil can be part of the climate change solution, further strengthening the image and reputation of palm oil globally,' he said.
He noted that Malaysia's biodiesel journey began in 2011 with B5, followed by phased expansions to B7, B10 and B20.
The B30 pilot now marks the country's most ambitious step forward in palm biodiesel usage.
Johari credited the close collaboration between SD Guthrie, the Malaysian Palm Oil Board (MPOB) and Petronas Dagangan Bhd (PDB) for bringing the project to fruition.
'This initiative reflects the strong collaboration between the public and private sectors in enhancing the competitiveness of Malaysia's palm oil industry through high-impact innovation,' he said.
He added that the B30 rollout also provides a blueprint for emission reductions across multiple sectors, aligning plantation decarbonisation efforts with Malaysia's wider energy transition agenda.
'This pilot project is a significant step towards realising the nation's commitment to the global sustainability agenda,' he said.
Johari hoped other plantation firms would adopt similar models, not only to improve emissions performance but to prepare Malaysia's palm oil sector for rising sustainability demands from global buyers.
Meanwhile, SD Guthrie Group MD Datuk Mohamad Helmy Othman Basha said the initiative is part of the company's long-term climate strategy and builds on its recent recognition as the world's first palm oil company with net-zero targets validated by the Science-based Targets initiative (SBTi).
'The launch of our B30 biodiesel campaign is an important milestone in SD Guthrie's journey towards net-zero emissions.
'By transitioning our entire fleet of operational machinery in Carey Island to B30, we are not only reducing our greenhouse gas (GHG) emissions but also setting a new benchmark for sustainable practices in the plantation sector,' he said.
The biodiesel, sourced from PDB's Melaka terminal, is expected to reduce GHG emissions by up to 23% per litre compared to conventional diesel.
The pilot will also allow engine manufacturers to evaluate long-term technical performance of higher biodiesel blends.
Mohamad Helmy said the pilot builds on SD Guthrie's ongoing efforts to mechanise, automate and digitalise its plantation operations.
Carey Island currently hosts the company's robotics centre, biodiesel plant and Mechanisation Transformation Unit.
'Carey Island is just the beginning. Our goal is to scale this across all SD Guthrie operations to further reduce our emissions,' he said.
He added that the full transition to B30 across all Guthrie estates could reduce CO2 emissions by 9,000 tonnes annually — equivalent to taking nearly 2,000 passenger vehicles off the road.
The project also supports Malaysia's aspiration to increase domestic consumption of palm oil, while reducing reliance on fossil fuels.
'Together with Ministry of Plantation and Commodities (KPK), Petroliam Nasional Bhd (Petronas) and MPOB, we are demonstrating how palm oil can be part of the climate solution, supporting Malaysia's green economy transition while enhancing the efficiency and resilience of our plantations,' he said.
Mohamad Helmy acknowledged that B30 carries a higher cost compared to existing biodiesel blends, but said the long-term environmental benefits outweigh short-term cost pressures.
Aside from Pulau Carey, SD Guthrie has also started a smaller pilot using B20 at its Seri Pulai estate in Johor.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Daily Express
3 days ago
- Daily Express
Net zero more than renewable energy
Published on: Wednesday, July 23, 2025 Published on: Wed, Jul 23, 2025 By: Sisca Humphrey Text Size: Dr Tan framed the company's climate strategy around two pillars, which are adaptation and mitigation. Kota Kinabalu: Net zero is not just about renewable energy, but it is about a systemic transformation that reshapes supply chains, product design, social commitments and innovation, said Head of Group Transformation at FGV Holdings Berhad Dr Gideon Tan. Speaking at the Marim Conference 2025 in here, recently, Dr Tan said the company's climate action efforts extend far beyond emissions and energy. 'Net zero is not just solar panels or certificates, it's a whole-of-organisation agenda,' he said. To contextualise FGV's sustainability journey, he said the company's complex business divisions, ranging from plantations and downstream processing to logistics, healthcare and even education. He noted that 74 per cent of FGV's palm oil crops come from smallholders, mirroring Asia's broader food system, which heavily depends on them. 'We're not just operating commercial estates. We run clinics and have built 17 schools for the children of migrant workers,' he said. Dr Tan framed the company's climate strategy around two pillars, which are adaptation and mitigation. 'Managing the effects of climate change is adaptation. Tackling the causes is mitigation. We need to do both,' he said. On adaptation, FGV is addressing climate extremes such as flooding and droughts while responding to global policies like the EU Deforestation Regulation (EUDR). Unable to expand land use due to deforestation restrictions, the group has focused on increasing yields per hectare. 'We no longer have the option to expand land. Yield improvement is the only way forward,' he said, citing their 56-year-old R&D centre that develops higher-yield planting materials. FGV has also deployed technologies like the FGV Geodagger, a satellite-linked device for precision replanting. Turning to mitigation, he emphasised the importance of understanding company emissions through inventory baselining, a process recently validated under the SBTi (Science-Based Targets initiative). The group's mitigation roadmap includes energy efficiency, solar power, bioenergy and transportation reforms. 'Our plantations operate in areas without public utilities. We build our own water, wastewater and energy systems,' he said. On energy efficiency, FGV performs audits across its supply chain and encourages internal innovation. One in-house invention is an electric transporter to replace petrol units for field operations. 'We want our employees to be innovators and our electric transporter was built in-house,' Dr Tan said. FGV's solar strategy leverages Malaysia's NETR framework and includes various ownership and feed-in tariff models. However, it's in bioenergy that the company sees significant potential. FGV operates biogas plants capturing methane emissions from mill effluent ponds, which is a major source of GHG. 'We capture methane before it reaches the atmosphere, one tonne of methane is equivalent to 28 tonnes of CO₂,' he said. It also operates two biomass power plants, including one in Sabah's off-grid areas and is exploring diverse applications for palm biomass, ranging from compost to aviation fuel. 'Palm oil uses only 0.5 per cent of the world's agricultural land, yet produces over a third of global vegetable oil supply,' he said, highlighting the efficiency of palm oil in the global food system. FGV also turns biomass into animal feed using black soldier fly larvae in what he calls a 'bio-refinery without a factory'. 'We turn waste into protein with black soldier fly larvae. It's a bio-refinery without a factory,' he said. As for transportation, FGV is replacing petrol-based field vehicles with EV models and trialling B100 biodiesel in logistics trucks and passenger vehicles. Dr Tan reiterated that net zero should not be reduced to a single target or technology. 'Net zero is not a slogan. It's a systemic shift in how we operate across supply chains, products and people,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia


Malaysian Reserve
3 days ago
- Malaysian Reserve
No fuel cost adjustment for domestic users under 600kWh
by HIDAYATH HISHAM DOMESTIC electricity users consuming 600 kilowatt-hours (kWh) or less per month will be exempt from automatic fuel cost adjustments under the new electricity tariff mechanism introduced on July 1. Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof said the exemption is part of the government's effort to shield lower- and middle-income households from rising energy costs while encouraging efficient energy use. 'The Automatic Fuel Cost Adjustment (AFA) will be implemented on a monthly basis, replacing the previous Imbalance Cost Pass-Through (ICPT) mechanism, which was reviewed every six months. 'However, domestic users consuming 600kWh or less will be automatically exempt from this adjustment,' he said in the Dewan Rakyat today. He was responding to Datuk Seri Takiyuddin Hassan (PN-Kota Bharu), who asked about the changes to Tenaga Nasional Bhd's (TNB) billing structure, including how it ensures cost fairness, promotes energy efficiency and provides targetted subsidies for the bottom 40% (B40) and middle 40% (M40) income groups. Fadillah said the Energy Commission (EC) introduced the new tariff structure on June 20, which came into effect in Peninsular Malaysia on July 1. It replaces the previous tiered domestic tariff system. The revised structure is guided by four principles, namely tariff transparency, cost-reflective pricing, fair cost distribution and minimal impact on domestic users. Under the new system, electricity bills now comprise four components — energy charge, capacity charge, network charge and retail charge — replacing the previous model, which included only an energy charge and a minimum charge. In addition, non-domestic tariffs are no longer determined by economic sector, but by voltage level, to better reflect actual supply costs. To cushion the impact, the government is introducing several incentives and targetted support schemes. These include energy efficiency incentives for domestic users consuming up to 1,000kWh per month, and for micro, small and medium enterprises (MSMEs) with monthly usage of 200kWh or less. 'These incentives are intended to promote smarter energy management and prevent MSMEs from having to raise the prices of goods or services due to the new tariffs,' he said. Fadillah added that domestic users consuming 600kWh or less are also exempt from the retail charge, as part of the government's direct assistance measures. The government estimates that about 85% of domestic users will remain unaffected and will continue to be protected under the new tariff structure.

Barnama
4 days ago
- Barnama
Johari Calls For Agency Streamlining, Mandatory Registration Of Plastic Recyclers Under MITI
KUALA LUMPUR, July 22 (Bernama) -- Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani today urged a streamlined approach among agencies managing plastic waste and proposed mandatory registration of all plastic recycling companies under the Ministry of Investment, Trade and Industry (MITI) to boost oversight and enforcement. Johari, who is also the Acting Minister of Natural Resources and Environmental Sustainability, said the current system involves fragmented jurisdiction across several agencies, including the Department of Environment, Solid Waste Management Department, MITI and the Customs Department. 'To be effective, these four agencies must come together. I've submitted this proposal to the Ministry of Natural Resources and Environmental Sustainability,' he said during a parliamentary session today. He was responding to Datuk Seri Ibrahim Man (PN–Kubang Kerian), who asked about improving enforcement at plastic recycling plants, some of which are linked to the illegal import of waste. Johari emphasised the importance of thoroughly inspecting all plastic waste containers entering the country and called for stricter monitoring at processing facilities to trace waste back to licensed operators. 'If a container arrives with false declarations, Customs may not catch it immediately. But by monitoring every company processing this waste, we can track which factories receive it and verify their licensing status,' he said. He also raised concerns that only 10 to 20 per cent of imported plastic waste is processed, with the bulk ending up in Malaysian landfills. 'We bear the high cost of landfill management while the exporting countries pay nothing,' he said. To address these challenges, Johari proposed making it mandatory for these companies to register under MITI, ensuring greater transparency through annual license renewals that require audited financial statements detailing sales, exports and market destinations.