SD Guthrie's B30 pilot project to set national benchmark for biodiesel use

Malaysian Reserve

18-07-2025

by HIDAYATH HISHAM
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.