The initiative was launched 1 June by Plantation Industries and Commodities Minister Tan Sri Bernard Dompok at a Petronas station in Putrajaya, a planned city south of Kuala Lumpur that serves as the country's federal administrative centre.
Distribution is expected to be rolled out across the country on a sequential basis starting with the Malaysian state of Malacca before moving out to Negeri Sembilan, Kuala Lumpur and Selangor.
The new law is expected to lead to the production of 200,000 tons of bio-diesel demand each year. Once fully implemented, demand for bio-diesel on a national scale is expected to rise to 500,000 tons annually.
The government of Malaysia has also allocated $14.3 million to finance the development of in-line blending facilities at six petrol depots in the central region of the country.
Cooperating petrol companies include Shell, Esso, Chevron, Petronas and Boustead Petroleum Marketing. The government has fixed the supply price of bio-diesel to these oil companies, linking it to the monthly average palm oil price.
For additional information:
Malaysian Ministry of by Plantation Industries and Commodities
