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    All licences related to the Biofuel product will now be issued by the Ministry of Plantation Industries and Commodities (MPIC). MPIC would be liaising with the 91 biofuel manufacturing licence holders at present.We hope that this will generate Biofuel industry in Malaysia.


    Biofuel manufacturers are now required to apply for a licence to undertake activities related to the product from the Ministry of Plantation Industries and Commodities (MPIC), its Minister Datuk Peter Chin Fah Kui said today.

    He said before the Malaysian Biofuel Industry Act 2007 was introduced, all biofuel manufacturing licence applications were processed and approved by the Ministry of International Trade and Industry (MITI).

    The Act was gazetted on July 26, 2007 and enforced from Aug 1 last year.

    The licensing activities under the Act are stipulated under the Malaysian Biofuel Industry (Licensing) Regulations 2008, which was enforced on Nov 1 last year.

    “Under the Act, all licences will now be issued by the Ministry of Plantation Industries and Commodities,” he told reporters after the launch of a seminar on “The Safety In Transportation of Palm Oil Products“, here today.

    As of October last year, the government had approved a total of 91 palm-based manufacturing licences with a total capacity of 10.2 million tonnes. Twelve palm-based biodiesel plants are presently in operation with a total annual capacity of 1.5 million tonnes.

    Meanwhile, four more new plants with an annual capacity of 190,000 tonnes were recently completed and are undergoing preparations for commercial production.

    In this regard, Chin said his Ministry would be liaising with the 91 biofuel manufacturing licence holders at present

    On Dec 19 last year, the government had agreed for biofuel (palm-based methyl ester) licence applications to be reopened on a limited basis until the end of December this year.

    The decision allows the Ministry to consider pending applications which have been frozen since June 29, 2006 as well as new applications, subject to the fulfillment of the specific conditions.

    Chin said further information pertaining to the licensing implementation can be accessed via the Ministry’s webpage at www.kppk.gov.my.

    He explained that commercial production of palm-based biodiesel in Malaysia had commenced in August 2006.The bulk of the production was for export purposes.

    He highlighted that from August 2006 to October 2008, a total of 0.3 million tonnes of palm-based biodiesel was produced, of which 0.29 million tonnes valued at RM889.36 million was exported.

    Major importing countries were the United States, the European Union and Singapore.

    Meanwhile, he said the use of Envo Diesel Ester (EDE) would start with government vehicles in February, and this would be followed by the industrial and transportation sectors respectively, with the full implementation expected by 2010.

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