Controversial B10 biodiesel hits snag

Controversial B10 biodiesel hits snag

A proposal to push through a controversial B10 bio-diesel next month hits
more snags, much to the relief of car and oil companies that want validated
testing of the palm-oil based fuel.

Firstly, the proposed B10 biodiesel will cost more than the current Euro5
diesel (RM1.70/litre) which currently has a 7% concentration of palm oil, a
blend which is called B7.

Secondly, the proposal to introduce this B10 biodiesel in the southern zone
will be seen as an unfair imposition on the affected pilot zone.

The Minister of Plantation Industries and Commodities (MPIC), Datuk Seri Mah
Siew Keong (pix), was reported as saying that B10 bio-diesel would be rolled
out in the fourth quarter this year.

He was quoted in a Malaysia Day special in a national English daily.

In fact, Mah could have been over-enthusiastic because the government has
agreed that there must be a consensus on this technical issue involving the
stakeholders.

The consensus won't happen anytime soon because oil companies will not want
exposure to the liability of supplying B10 unless this blend is tested and
validated by engine makers.

"Sort out the engine warranty first and then we do B10. We don't need the
liability of supplying a fuel that is not approved by engine makers," he
said.

"There are claims that B10 is used in Indonesia but the real picture is that
B10 diesel is only available in some Pertamina stations and nowhere else,"
he said.

From the point of view of car companies in Malaysia, the stakeholders agreed
that the discussions were in the very early stage.

"Last time we had a talk with MPIC, they said that the OEMs were OK when we
weren't," said a participant at MAI's first round table last month.

The Malaysia Automotive Institute (MAI) is coordinating efforts in
introducing B10 bio diesel to the Malaysian market, consistent with the
government's direction of greener emissions and reduced fossil fuel
dependency.

A key area of concern for the industry think-tank is a common test
methodology that addresses the technical requirements of all parties
involved.

This is a good opportunity for MPIC and MPOB to do pioneering research on
B10 in cooperation with car makers such as BMW which a year ago supplied a
BMW520d and a BMW 320d to MPOB for testing.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Ref: http://www.thesundaily.my/news/1979608

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com