Monday 5 March 2018

B10 - Part 1 - Biodiesel implementation in Malaysia

1. The B10 blend that was slated to be introduced at petrol stations nationwide consists of 10% palm methyl ester and 90% regular diesel fuel.

2. Fuel stations currently sell the B7 blend (7% palm methyl ester). However, the implementation of the B10 blend will only affect Euro 2M diesel in Malaysia, while Euro 5 diesel will continue to be a B7 blend.


GOVERNMENT INITIATIVE
1.  Malaysia is expected to roll out the biodiesel 10% blend (B10) programme nationwide upon full agreement among the parties involved with the B5 biodiesel programme. 

2. One million tonnes of crude palm oil (CPO) per year is expected to be taken out from our current high stockpiles from the B10 programme.

3. The Government has budgeted RM300mil for the building of the biodiesel blending facilities nationwide and about RM80mil spent to build the blending facilities and in the biodiesel subsidies.


CONCERNS VOICED OUT
1. Several manufacturers like BMW, Toyota, Mercedes, Volkswagen and Isuzu have voiced their concern about the usage of B10 in their vehicles.

2. Few other organisations and associations in Malaysia have urged the government to conduct further testing and discuss the matter beforehand.


ISSUES
1. Withdrawal of the B10 blend’s implementation was due to high crude palm oil (CPO) prices.

2. Once B10 biodiesel (Euro 2M) goes on sale at fuel pumps, there is a likelihood that it will cost up to 3-4 sen more per litre compared to B7 (Euro 2M). Euro 5 diesel, which will continue to be a B7 blend then, will continue to be priced higher than B10 by between 10-20 sen more.

3. Japan Automobile Manufacturers Association (JAMA) has approved the usage of biodiesel blends of up to B20 but there’s a catch. Only palm oil methyl ester can be used, and only on vehicles that have a maximum emissions rating of Euro 4.

4. No modifications have to be made to a vehicle to use the B20 blend, but should a higher blend (B30 or even B100) be used, several components will need to be changed, chief among which is the fuel system’s hoses.


BENEFITS OF B10 
1. B10 blend will help lessen the effects of global warming and other the onset of acid rain, as well as increasing the quality of the air. From a technical aspect, the B10 blend is said to reduce the fuel consumption on diesel engines due to the better burn efficiency of the fuel.

2. Currently, countries like Colombia, Argentina and the United States are already selling the B10 blend. Meanwhile, Indonesia has implemented the B20 blend, providing subsidies to make it cheaper than regular diesel to encourage its adoption.

3. As a result, the republic has managed to reduce its diesel imports by as much as 20%, and use its own CPO produced locally. As a side note, the manufacturer warranty for vehicles there remained unchanged.

4. MPOB itself have been using the B10 blend in a variety of vehicles it owns, including commercial vehicles like pick-up trucks, and diesel-powered passenger vehicles with no issues. Kuala Lumpur City Hall (DBKL) also uses B10 in 50 of its own vehicles.

5. The implementation of B10 has nothing to do with the excess reserves of CPO, because even with the current B7 blend, it only accounts for 1.8% or about 350,000 tonnes of total CPO output (19 million tonnes a year).

Source: (mpoc, paultan)