Malaysian biodiesel program lags behind neighbors

Malaysia’s plan to introduce a biodiesel mandate in 2010 does not look promising given the poor consumption rate by its initial target group, diesel-powered government vehicles in the Klang Valley, The Star newspaper reported. The report quoted a source close to the industry as saying that consumption by the defense ministry, the Kuala Lumpur City Hall and Selangor’s Public Works department was together less than 40 metric tons a month. This worries biodiesel producers as they wonder how successful the program would be when it is rolled out to the industrial sector and the public by early 2010. The government had projected a demand of 500,000 metric tons per year of biodiesel upon full implementation of the B5 program. (October 13, 2009)