Felda pushes B100 biodiesel as fuel costs surge

Federal Land Development Authority (Felda) chairman Datuk Seri Ahmad Shabery Cheek says the current geopolitical climate makes it timely to scale up B100 biodiesel as a viable alternative fuel.

KUALA LUMPUR: A brown Mazda CX-8, partially covered with a B100 biodiesel sticker, sits at the entrance of Menara Felda, just a stone’s throw from the Petronas Twin Towers.

As executives at Petronas navigate escalating oil prices driven by the US-Israel-Iran conflict, Federal Land Development Authority (Felda) and its subsidiary, FGV, are positioning B100 biodiesel as a potential alternative for Malaysians.

Felda chairman Datuk Seri Ahmad Shabery Cheek acknowledged that Felda currently lacks the capacity to produce sufficient supply for mass adoption, even as diesel-powered vehicle owners feel the strain of rising prices.

However, the former Agriculture and Agro-based Industry Minister said B100 biodiesel could be a “game changer”.

“Industry needs diesel, even school buses need it. The cost for Putrajaya to subsidise fuel is rising,” he said.

He added that producing B100 biodiesel would strengthen the nation’s energy security and provide leverage in negotiations with other countries.

“But do we have the capability for mass production at this point in time? No. We need to increase the capacities of our refineries.”

Beyond infrastructure, Felda will also require buy-in from Putrajaya and vehicle manufacturers to convince the public to adopt the alternative fuel.

Diesel in Peninsular Malaysia is currently priced at RM6.02 per litre. In Sabah, Sarawak and Labuan, it remains subsidised at RM2.15 per litre.

The surge in diesel prices has been driven largely by rising global oil prices following the ongoing US-Israel-Iran conflict, which has disrupted shipping routes through the Strait of Hormuz. Around 20 per cent of the world’s oil supply – about 20 to 21 million barrels per day as of 2024 – passes through the strait.

Several countries, including Malaysia, the Philippines and Pakistan, have recently secured agreements with Tehran to ensure safe passage for their vessels.

FGV Biotechnologies, a subsidiary of FGV, launched its B100 biodiesel campaign last year.

The fuel, which is fully derived from palm oil, has been tested on a diesel-engine Mazda CX-8 for performance and efficiency.

“It’s been 17 months, and having clocked thousands of kilometres, there have been no issues with the car or its engine,” Ahmad Shabery said.

“We will use B100 biodiesel for our vehicles as a means to reduce operational costs.”

In 2023, Scania (Malaysia) Sdn Bhd and Shell Malaysia Trading Sdn Bhd launched a pilot test involving Scania road tankers operated by Konsortium Port Dickson Sdn Bhd, running solely on B100 biodiesel.

Scania said trials showed the fuel reduced carbon emissions by up to 70 per cent and was suitable for heavy haulage with adjustments in driving behaviour.

The company added that there were no issues when vehicles were properly equipped, and that B100 biodiesel is a viable alternative given its local production.