National Biodiesel Programme Set to Utilize 1.13 Million Tonnes of Palm Oil by 2026

Kuala lumpur: The National Biodiesel Programme is expected to use approximately 1.13 million tonnes of palm oil by the end of 2026, according to the Ministry of Plantation and Commodities (KPK).

According to BERNAMA News Agency, the projected figure considers the current usage of crude palm oil (CPO) in 2025 and the anticipated increase in CPO consumption following the implementation of B15 biodiesel starting from June this year. In 2025, the use of palm methyl ester (PME) for B10 and B20 in the transportation sector, along with B7 in the industrial sector, amounted to 934,823.31 tonnes. The rollout of B15 from June 2026 is expected to boost CPO usage by approximately 330,000 tonnes annually for domestic transportation biodiesel.

The KPK explained that when the existing CPO usage data for 2025 is combined with the projected increase from the implementation of B15, the total palm oil utilization for the National Biodiesel Programme is anticipated to reach around 1.13 million tonnes by the end of 2026. This information was detailed in a written response published on the Parliament website today, addressing Teresa Kok Suh Sim (PH-Seputeh) about the status of upgrading all biodiesel depots in Malaysia, along with the expected volume and value of palm oil to be used as biodiesel until the end of the year.

Regarding biodiesel depot upgrades, the ministry reported that the engineering design work for all four depots had been completed. This includes the construction of biodiesel tanks, the installation of biodiesel reception systems, and the construction of new pipes and meters.