The government’s decision to introduce the usage of biodiesel B7 to the industrial sector and upgrading from B7 to B10 for the transportation sector is seen as a catalyst for the revival of the nation’s biodiesel industry.
Currently, the biodiesel industry is not competitive due to the low price of world crude oil and high dependency on government mandate to increase its demand.
With the implementation of both new mandates, Felda Global Ventures Holdings Berhad (FGVHB) is expecting a minimum 40% increase in the local biodiesel demand.
The increase in biodiesel consumption will reduce crude palm oil (CPO) dumping and this will help stabilize prices for the long-term.
Since 2015, FGV has implemented the consumption of B30 for internal usage in stages as an effort to increase the sustainability of its operations and to prove the potential of biodiesel as sustainable fuel alternative.
FGV GROUP PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO)
Dato’ Zakaria Arshad