Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2006
Effective Start Year: 
2006
Scope: 
National
Document Type: 
Overarching Policy
Economic Sector: 
Energy, Power, Industry, Transport
Energy Types: 
Renewable, Bioenergy, Other
Issued by: 
Ministry of Plantation Industries and Commodities
Overall Summary: 
The National Biofuel Policy 2006 encourages the use of biofuels, it spells out a comprehensive framework with concrete initiatives in line with the objectives of the United Nations Framework Convention on Climate Change (UNFCCC) to which Malaysia is a party. In particular, the Policy sets the platform for attainment of the following objectives: - supplementing the depleting supply of fossil fuels with renewable resources; - mobilising local resources for biofuels - exploiting local technology to generate energy for the transportation and industrial sectors; - paving the way for exports of biofuels; and - benefiting from the spin-off effect of more stable prices for palm oil.
Efficiency
EE transport standards : 
The Malaysian Standard specifications for B5 diesel will be established -short term.
Renewable Energy
RE priorities: 
Use of environmentally friendly, sustainable and viable sources of energy to reduce the dependency on depleting fossil fuels.---The National Biofuel Policy envisions that biofuel will be one of the five energy sources for Malaysia, enhancing the nation’s prosperity and well-being.
RE action plans: 
Biofuel for Industry: B5 diesel will also be supplied to the industrial sector including for firing boilers in manufacturing, construction machinery, and generators.---Thrust 3: Biofuel technologies: Research, development and commercialisation of biofuel technologies will be effected and adequately funded by both the government and private sectors including venture capitalists to enable increased use of biofuel.---Thrust 4: Biofuel for export: [...]The establishment of plants for producing biofuel for export will be encouraged and facilitated.---Selected Government departments with their fleets of diesel vehicles will participate in trials for using B5 diesel -short term.---B5 diesel pumps for the public will be established at selected stations. -short term.---Voluntary trials on B5 diesel will be run by MPOB for selected users in the industrial sector. short term.---The Malaysian Standard specifications for palm oil based methyl ester biofuel for domestic use and export will be established. -medium term.---Efforts will be made to get engine manufacturers to extend their warranties to the use of B5 diesel. Extensive B5 diesel testing shall be carried out to facilitate the granting of such engine warranties-medium term.---To meet strategic thrust for exporting biofuel, establishment of commercial methyl ester plants will be encouraged. In this regard, MPOB will act as a catalyst by pioneering the establishment of palm biodiesel plants in Malaysia in collaboration with the private sector.---The proportion of processed palm oil in the diesel blend will be gradually increased. -long term.
Biofuels obligation/mandate: 
Biofuel for transport: Diesel for land and sea transport will be a blend of 5% processed palm oil and 95% petroleum diesel. This B5 diesel will be made available throughout the country.
RE capital subsidy, grant, or rebate: 
If [Biodiesel] projects fulfill specific criteria, they may also be considered for other incentives including: i) Incentives for Strategic or High Technology projects; ii) Incentives for Commercialisation of Research and Development findings of the public sector in resource based industries.
RE public awareness/promotional programmes: 
A promotional awareness programme will educate the public on the use of B5 diesel. - short term.
Environment
Energy environmental priorities: 
Thrust 5: Biofuel for cleaner environment: [...] Increased use of biofuel will enhance the quality of the environment.
Energy Supply and Infrastructure
Infrastructure development priorities: 
To meet strategic thrust for exporting biofuel, establishment of commercial methyl ester plants will be encouraged. In this regard, MPOB will act as a catalyst by pioneering the establishment of palm biodiesel plants in Malaysia in collaboration with the private sector.
Trade
Energy trade priorities: 
Thrust 4: Biofuel for export: [...]The establishment of plants for producing biofuel for export will be encouraged and facilitated.
Investment
Public Private Partnerships: 
Thrust 3: Biofuel technologies: Research, development and commercialisation of biofuel technologies will be effected and adequately funded by both the government and private sectors including venture capitalists to enable increased use of biofuel.---To meet strategic thrust for exporting biofuel, establishment of commercial methyl ester plants will be encouraged. In this regard, MPOB will act as a catalyst by pioneering the establishment of palm biodiesel plants in Malaysia in collaboration with the private sector.
Governance
National policy structure: 
Legislation to mandate the use of B5 diesel will be passed and enforced.- medium term.
Technology
Clean energy technology deployment: 
Thrust 3: Biofuel technologies: Research, development and commercialisation of biofuel technologies will be effected and adequately funded by both the government and private sectors including venture capitalists to enable increased use of biofuel.
R&D renewable energy: 
Thrust 3: Biofuel technologies: Research, development and commercialisation of biofuel technologies will be effected and adequately funded by both the government and private sectors including venture capitalists to enable increased use of biofuel.