A detailed survey of the palm and biodiesel industry landscape in Malaysia

This paper provides a critical review of the palm biodiesel landscape in Malaysia. The palm industry is a key source of revenue for the country, where in 2009 the industry was responsible for generating 8% of the gross national income per capita. The interest in palm-based biodiesel can be traced ba...

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Bibliographic Details
Published in:Energy (Oxford) 2014-11, Vol.76, p.931-941
Main Authors: Abdul-Manan, Amir F.N., Baharuddin, Azizan, Chang, Lee Wei
Format: Article
Language:English
Subjects:
Applied sciences
Biodiesel
Biofuels
Biomass
Blends
Diesel
Diesel fuels
Economic data
Energy
Energy economics
Energy policy
Exact sciences and technology
Fuels
General, economic and professional studies
Landscapes
Malaysia
Natural energy
Palm
Palm oil
Policies
Renewable energy
Sustainable energy
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Summary:This paper provides a critical review of the palm biodiesel landscape in Malaysia. The palm industry is a key source of revenue for the country, where in 2009 the industry was responsible for generating 8% of the gross national income per capita. The interest in palm-based biodiesel can be traced back to the early 1980s however it was only in 2006 that Malaysia officially formulated its first National Biofuel Policy as a strategic government intervention to drive development and implementation of palm biodiesel as substitute to regular fossil-based diesel. As at January 2013, the implementation of the biodiesel mandate (at 5% concentration) has been limited to the Klang Valley central region only. But there are plans for a much wider roll-out and at higher concentration blends in 2014. The policy in its current form assumes that all biofuels are sustainable and therefore fails to provide assurances that the fossil diesel will be replaced by a more sustainable energy source. Here it has been argued that a market-based policy approach would be better than a technology-forcing mechanism. •Analyze the past, present and future of Malaysia's oil palm and biodiesel industry.•Present a critique of the National Biofuel Policy in Malaysia.•Critical gaps within the National Biofuel Policy were identified.•Malaysia’s ETP (economic transformation plan) is an important initiative to enhance the sustainability of palm biodiesel.
ISSN:0360-5442
DOI:10.1016/j.energy.2014.09.007