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New Straits Times
18-07-2025
- Automotive
- New Straits Times
Jo Ghani: Govt exploring ways to expand biodiesel use
BANTING: The government is looking to expand the use of biodiesel in the country in its efforts towards a more sustainable fuel source, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. He said the national biodiesel programme, which has been running since 2011, has stalled in terms of adopting a higher blend of palm biodiesel, citing capital expenditure and infrastructure constraints. "In 2019, Malaysia made B7 mandatory for the industrial sector and B10 for the logistics sector, but we have not moved to B20 since then because it requires significant capital expenditure of RM580 million. "So we are working on how to implement it, who should bear the subsidy, and we want to see what happens once it becomes B20, how it will affect diesel prices, all of that needs to be examined," he told reporters after launching the B30 Biodiesel pilot project at SD Guthrie Bhd's Golden Hope Academy in Carey Island today. As for today's event, SD Guthrie Bhd will fully transition to using B30 biodiesel for all its operational machinery and company vehicles that run on diesel at its plantation operations in Carey Island. B30 biodiesel, a blend of 30 per cent palm-based biodiesel and 70 per cent petroleum-based diesel, is a cleaner fuel and can reduce greenhouse gas (GHG) emissions by up to 23 per cent per litre compared to conventional diesel. He said that if biodiesel usage can be widely implemented nationwide, there may be price adjustments for the commodity. However, Johari declined to elaborate on how it might affect the targeted fuel subsidies, saying it is still too early to disclose details. "The use of palm biodiesel offers clear environmental benefits. It not only helps reduce GHG emissions compared to traditional diesel, but it is also sulphur-free," he added.
The Sun
18-07-2025
- Automotive
- The Sun
Malaysia explores biodiesel expansion for sustainable fuel
BANTING: The government is actively exploring ways to expand biodiesel usage nationwide as part of its push for cleaner and more sustainable fuel alternatives, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. 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
Malaysian Reserve
18-07-2025
- Business
- Malaysian Reserve
SD Guthrie's B30 pilot project to set national benchmark for biodiesel use
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.
The Sun
18-07-2025
- Business
- The Sun
National Climate Change Bill to offer carbon reduction incentives
KUALA LANGAT: The upcoming National Climate Change Bill will introduce incentives for companies that successfully cut carbon emissions, Acting Natural Resources and Environmental Sustainability Minister Datuk Seri Johari Abdul Ghani announced. The bill, still in drafting, may also incorporate carbon credit mechanisms to accelerate Malaysia's net-zero emissions target by 2050. Johari confirmed the draft is under review, with plans to consult industry stakeholders, including Bursa Malaysia, before finalising the legislation. 'The first draft is already out, but I need to review it thoroughly to ensure the proposed law is industry-friendly and effective,' he said. The minister shared these details after launching the B30 Biodiesel pilot project at Guthrie's Golden Hope Academy in Pulau Carey. Earlier reports indicated the bill could be tabled in August, as stated by ministry secretary-general Datuk Dr Ching Thoo. - Bernama
